The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm’s capital?
- #184, 000
- #196,500
- #212,000
-
#168,500
The correct answer is: D
Explanation
The net working capital formula is calculated by subtracting the current liabilities from the current assets.
Assets = 190,500
liabilities = 14,000 + 8,000 = 22,000
190,500 - 22,000 = 168,000 (capital)