Asked by Brianna Prater on Jun 16, 2024
Verified
Jones Corp.reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet.The working capital is:
A) 141%.
B) 71%.
C) ($56,000) .
D) $56,000.
E) 41%.
Working Capital
The difference between a company's current assets and current liabilities, used to measure its short-term financial health and operational efficiency.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.
Current Liabilities
Financial obligations of a business that are due and payable within one year, including accounts payable, short-term loans, and other short-term debts.
- Understand and calculate working capital and its significance.
Verified Answer
Learning Objectives
- Understand and calculate working capital and its significance.
Related questions
Current Assets Minus Current Liabilities Is ...
McRae Corporation's Total Current Assets Are $380,000, Its Noncurrent Assets ...
Calin Corporation Has Total Current Assets of $615,000, Total Current ...
Data from Dunshee Corporation's Most Recent Balance Sheet Appear Below ...
Working Capital Is Computed as Current Liabilities Minus Current Assets