Question

Ankit Ltd. has Rs.30,000 in accounts receivable, Rs.85,000 in inventory as cost of finished goods and raw material, Rs.70,000 in securities. The same company has Rs.15,000 as accounts payable to suppliers, Rs.8,000 as debt and Rs.40,000 as outstanding expenses. Calculate its net working capital.

Answer 1

Answer:

Working capital= current asset- current liabilities

Current assets= 30,000+85,000

= 1,15,000

Current liabilities=15,000+40,000

=55,000

Net working capital= 1,15,000-55,000

=60,000

here,

* shares are considered long term investment

* Debt is considered long term liability

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