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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.

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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

MCQ
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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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