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what is the value of working capital

Commerce
WAEC 2016

use the following information relating to Bala enterprises to anwser the question
  N
premises 32,000
motor vehicle 15,000
debtors 15,000
stock 20,000
creditors 10,000

 

what is the value of working capital

  • A. N47,000
  • B. N35,000
  • C. 25,000
  • D. 10,000
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Correct Answer: Option C
Explanation

The net working capital formula is calculated by subtracting the current liabilities from the current assets. 

working capital = current assets - current liabilities

35,000 - 10,000 = 25,000

 


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