alleryStart learning →With $1,000,000 of current assets and $750,000 of current liabilities, net working capital is:
A$150,000
B$250,000
C$750,000
D$500,000
Answer & Solution
Correct answer: B. $250,000
1. Net working capital subtracts the liabilities from the assets.
2. Take $750,000 away from $1,000,000.
3. The net working capital would be $250,000.
4. That excess is what would be left after covering the obligations.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_
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