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A company has net working capital of $1,753. If all its current assets were liquidated, the...

A company has net working capital of $1,753. If all its current assets were liquidated, the company would receive $5,689. What are the company's current liabilities? Multiple Choice $7,442 $4,813 $7,097 $3,721 $3,936

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Answer #1

Solution :

The net working capital of a company is calculated as follows :

Net working capital = Current Assets – Current Liabilities

As per the information given in the question we have

Net working capital = $ 1,753 ; Current Assets = $ 5,689 ; Current Liabilities = To find ;  

Applying the available information in the formula we have

$ 1,753 = $ 5,689 - Current Liabilities

Current Liabilities + $ 1,753 = $ 5,689

Current Liabilities = $ 5,689 - $ 1,753

Current Liabilities = $ 3,936

Thus the company’s current liabilities = $ 3,936

The solution is option 5 = $ 3,936

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