| 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
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