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kolbaska11 [484]
2 years ago
13

Zumbahlen Inc. has the following balance sheet. How much total operating capital does the firm have?

Business
1 answer:
satela [25.4K]2 years ago
6 0

Answer: the operating capital is $40.00

Explanation:

operating capital is also known as working capital. it is the value of running a business on daily basis. it is also the value of short term resources available for use in daily activities.  it is current assets minus current liabilities of a business.

current assets = cash + inventory + account  receivable + short term investment = 20+50+20+60= 150

current liabilities = accruals + account payable + notes payable=50+30+30=110

operating capital = 150 - 110 = 40

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