Yukon Company has total current liabilities equal to $600,000 and working capital of $30,000.North Company has the same amount of working capital,but it has total current liabilities of $40,000.The company with the better working capital position is:
A) North Company
B) Yukon Company
C) They both have exactly the same working capital position.
D) indeterminable with the information given

Question

Quizplus · Accepted Answer

North Company has a better working capital position because it has the same working capital amount ($30,000) but significantly lower current liabilities ($40,000) compared to Yukon Company ($600,000), indicating a stronger liquidity position.

Yukon Company Has Total Current Liabilities Equal to $600,000 and Working