Asked by
Alexia Perez
on Oct 09, 2024Verified
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
Noncurrent Assets
Long-term assets that are not expected to be converted into cash within a year, such as property, plant, and equipment.
Working Capital
Current assets minus current liabilities, indicating the short-term liquidity of a business.
Stockholders' Equity
The net value that represents the owners' interest in a company, calculated as total assets minus total liabilities.
- Gain insight into the method and significance of working capital as it showcases a business entity's short-duration financial condition.
Verified Answer
LG
Learning Objectives
- Gain insight into the method and significance of working capital as it showcases a business entity's short-duration financial condition.