Use this balance sheet and income statement to answer the following question. The total amount of working capital of Abner Systems is
A) $0.
B) $6,000.
C) $2,000.
D) $10,000.

Question

Use this balance sheet and income statement to answer the following question.   The total amount of working capital of Abner Systems is
A) $0. 
B) $6,000. 
C) $2,000. 
D) $10,000.

Quizplus · Accepted Answer

Working capital is calculated by subtracting current liabilities from current assets.

Current assets = $8,000 + $2,000 + $2,000 = $12,000
Current liabilities = $6,000 + $4,000 = $10,000

Working Capital = Current Assets - Current Liabilities = $12,000 - $10,000 = $2,000.

Therefore, the correct answer is C.

Use This Balance Sheet and Income Statement to Answer the Following