Question

A company has net working capital of $2,077. If all its current assets were liquidated, the company would receive $6,001. What are the company's current liabilities?

Answer 1

Answer:

The current liability is $$3,924

Explanation:

Net working capital is calculated by subtracting current Liability of a business from its current asset.

i.e Net working capital = current asset - current Liability

In this question, net working capital is $2,077 while current asset is $6,001.

Therefore current liability = current asset - net working capital.

$6,001 - $2,077

=$3,924.