Build the working capital figure

Exercise and reference answers

Start

Item

Current assets

Value

500

Steps

1. Operation

   sub

   Item

   Less current liabilities

   Value

   250

2. Operation

   sub

   Item

   Less short-term loans due

   Value

   50

Other choices

1. Explanation

   Long-term debt is not a current liability, so it stays out.

   Item

   Less long-term debt

2. Explanation

   Revenue is not a balance sheet item and does not belong here.

   Item

   Add annual revenue

Instructions

Tap the steps in order to build the total. Wrong taps explain themselves.

Result

Working capital

Explanation