In 2016, Southwest Airlines had negative net working capital of $(2,346) million and current assets of $4,498 million.
The firm's current liabilities are:
A) $2,152 million
B) $6,844 million
C) $2,346 million
D) $5,236 million
E) There is not enough information to calculate the amount.

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Given that Southwest Airlines had negative net working capital of $(2,346) million and current assets of $4,498 million, we can set up the equation $4,498 million - Current Liabilities = -$(2,346) million. Solving for Current Liabilities gives us $6,844 million.

In 2016, Southwest Airlines Had Negative Net Working Capital of $(2,346)