Series 79 practice questionmediumWorking Capital Calculation
Given the following balance sheet data: Current Assets = $250 million, Current Liabilities = $200 million, what is the company's net working capital?
- A$50 million✓ Correct answer
- B$450 million
- C$-50 million
- D$200 million
Explanation
Why A — $50 million
Net working capital = Current Assets - Current Liabilities = $250m - $200m = $50m. $450m ignores the formula, and $-50m reverses the calculation.
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