Asked by Maryam Ahsan on May 08, 2024
Verified
Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600.
What is Alpha Company's working capital?
Working Capital
The amount of a company's current assets minus its current liabilities, indicating the short-term liquidity position of the company.
Current Liabilities
Obligations or debts that a company is expected to pay off within one year or within its operating cycle, whichever is longer.
Current Assets
These are short-term assets likely to be converted into cash, utilized, or sold within the business cycle or a year.
- Compute a company's working capital and understand its importance in assessing financial health.
Verified Answer
Learning Objectives
- Compute a company's working capital and understand its importance in assessing financial health.
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