Yukon Company has total current liabilities equal to $600,000 and working capital of $30,000. Northwest 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:

Question

Quizplus · Accepted Answer

Northwest 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). This indicates a stronger liquidity position.

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