Current asset=160, current libility=100, what is the working capital?

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BlackTom AI · Accepted Answer

To determine working capital, subtract current liabilities from current assets: 160 − 100 = 60.
Option 60: This matches the calculation for working capital, since working capital = current assets − current liabilities. The value 60 is correct.
Option 160: This would imply either not subtracting current liabilities or misidentifying the base amount, which ignores the requirement to net liabilities from assets.
Option 50: This would correspond to 100 − 50 or another misapplied operation; it does not reflect the standard formula for working capital using the given figures.
Option 100: This would imply that current assets equal current liabilities, which would yield a working capital of 0, not 100; it’s inconsistent with the provided asset and liability values.

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Current asset=160, current libility=100, what is the working capital?

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