Current assets are $ 5,288. The current ratio is 1.26. How much is net working capital?
A) $ 1,091
B) $ 1,145
C) $ 1,231
D) $ 1382

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Given a current ratio of 1.26 and current assets of $5,288, we can find current liabilities as $5,288 / 1.26 = $4,197. Therefore, net working capital = $5,288 - $4,197 = $1,091.

Current Assets Are $ 5,288