Peterson Company has current liabilities of $130,000 and working capital of $32,000.Its current assets therefore must equal $162,000.

Question

Quizplus · Accepted Answer

Working capital is defined as current assets minus current liabilities. Therefore, to find the current assets, we can rearrange the formula: current assets = working capital + current liabilities. Plugging in the given values, we get: current assets = $32,000 + $130,000 = $162,000.

Peterson Company Has Current Liabilities of $130,000 and Working Capital