Use this information to answer the following question.
-The total amount of working capital is
A)$150,000.
B)$370,000.
C)$100,000.
D)$60,000.

Question

Use this information to answer the following question.  
-The total amount of working capital is
A)$150,000. 
B)$370,000. 
C)$100,000. 
D)$60,000.

Quizplus · Accepted Answer

The total amount of working capital is calculated by subtracting the current liabilities from the current assets. From the given information, the current assets are $220,000 and the current liabilities are $120,000. Therefore, the total working capital is $100,000 (i.e. $220,000 - $120,000). Thus, the correct answer is option C, which is $100,000.

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