Mcrae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:
A)$380,000
B)$40,000
C)$250,000
D)$290,000

Question

Quizplus · Accepted Answer

Working capital is calculated by subtracting current liabilities from current assets. Therefore, working capital = $380,000 - $340,000 = $40,000.

Mcrae Corporation's Total Current Assets Are $380,000, Its Noncurrent Assets