Business FinancesQuestion 294 of 1605
A contractor has current assets of $90,000 and current liabilities of $60,000. What is the working capital?
a.$1.50
b.$30,000
c.$150,000
d.$60,000
Explanation
Working capital = Current Assets − Current Liabilities = $90,000 − $60,000 = $30,000. Working capital measures the short-term funds available to operate the business.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)