Question

A company has net working capital of $1,888. If all its current assets were liquidated, the company would receive $5,819. What are the company's current liabilities? Select one: a. $3,931 b. $7,707 c. $7,362 d. $4,875 e. $3,854

Answer 1

Answer:

a. $3,931

Explanation:

The net working capital can be calculated using the below mentioned formula:

Net working capital=current assets- current liabilities

In the given question,

Current assets=$5,819

Net working capital=$1,888

1,888=5,819-current liabilities

Current liabilities=$3,931

So based on the above calculations, the answer shall be a. $3,931