Asked by Bryce Takeyama on Jun 16, 2024
Verified
Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin's Company's working capital is
A) $10,410
B) $24,920
C) $36,570
D) $68,650
Working Capital
The difference between a company's current assets and current liabilities, indicating its short-term liquidity.
Current Assets
Current assets are short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.
- Calculate the current ratio of an organization and recognize its impact on short-term liquidity.
Verified Answer
MC
Mikayla CunneyJun 19, 2024
Final Answer :
A
Explanation :
Working capital is calculated as current assets minus current liabilities. For Astin Company, this is $82,530 - $72,120 = $10,410.
Learning Objectives
- Calculate the current ratio of an organization and recognize its impact on short-term liquidity.