The data above shows the net working capital requirements for Flinder's Camping, a company that makes tents. All figures are in thousands of dollars. What are Flinder's temporary working capital needs in the quarter in which they are greatest?

Question

Quizplus · Accepted Answer

Flinder's temporary working capital needs are calculated as the difference between the peak level of current assets (in this case, $2,730,000) and the minimum level of current liabilities (in this case, $2,010,000). Therefore, the temporary working capital needs in the quarter of greatest need is $2,730,000 - $2,010,000 = $720,000.

The Data Above Shows the Net Working Capital Requirements for Flinder's