Business FinancesQuestion 1131 of 1632
A contractor has current assets of $150,000 and current liabilities of $90,000. What is his working capital?
a.$1,667
b.$60,000
c.$90,000
d.$240,000
Explanation
Working capital = current assets - current liabilities = $150,000 - $90,000 = $60,000. This is the cash cushion available for short-term obligations.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)