Question

If current assets are $100,000 and current liabilities are $42,000, what is the working capital?

a. $58,000
b. 200 percent
c. 50 percent
d. 2.0

Answer 1

Working capital is the difference between current assets and current liabilities. The working capital in this case is $58,000.

Step-by-step explanation:

Working capital is the difference between a company's current assets and current liabilities. To calculate it, subtract the current liabilities from the current assets. In this case, the current assets are $100,000 and the current liabilities are $42,000. So, the working capital is $100,000 - $42,000 = $58,000. Therefore, the correct answer is a. $58,000.