Alfred has set up a company. On day 1 he bought inventory, paying 6,000.0 on credit, due for payment on day 10. On day 2 he make

Question

2 years ago

8

s a credit sale of all his inventory for 12,500.0, due for payment on day 12. Calculate operating working capital at the end of day 11.

1 answer:

9966 [12] · Answer 1 · 2023-03-25T06:02:20+03:00

The operating working capital that Alfred is going to have at the end of the day would be $12500.

<h3>How to solve for the working capital</h3>

The formula for the working capital = current assets - current liabilities

Current assets = $12500

current liabilities = 0

This is because, by the 10th day, he is supposed to have paid account payable.

The working capital would be = $12500 -0

= $12500

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