Young Corporation has Current Assets of $125,000, Current Liabilities of $50,000, Long-Term Liabilities of $25,000 and Total Assets of $300,000. What is the working capital of Young Corporation?
A) $75,000
B) $150,000
C) $425,000
D) $500,000

Question

Quizplus · Accepted Answer

Working capital is calculated by subtracting current liabilities from current assets. 
Working Capital = Current Assets - Current Liabilities
= $125,000 - $50,000
= $75,000. 
Therefore, the correct answer is A, $75,000.

Young Corporation Has Current Assets of $125,000, Current Liabilities of $50,000