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Question
What will be the Net Working Capital of Sukhom Ltd. from the given data?
| Cash | Rs. 2,00,000 |
| Account Receivables | Rs. 1,50,000 |
| Account Payables | Rs. 65,000 |
| Inventory | Rs. 3,00,000 |
| Short term borrowings | Rs. 1,00,000 |
| Outstanding Salaries | Rs. 50,000 |
Options
Rs. 6, 50,000
Rs. 2,15,000
Rs. 8,65,000
Rs. 4,35,000
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Solution
Rs. 4,35,000
Explanation:
Net working Capital = Current Assets - Current liabilities
Current Assets = Cash + Account receivable + Inventory
Current Assets = 2,00,000 + 1,50,000 + 3,00,000
Current Assets = 6,50,000
Current liabilities = Account Payables - Short term borrowings - Outstanding Salaries
Current liabilities = 65,000 + 1,00,000 + 50,000
Current liabilities = Rs. 2,15,000
Net working Capital = Current Assets - Current liabilities
= 6,50,000 - 2,15,000
= 4,35,000
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