Question

Raatz Corporation's total current assets are $370,000, its noncurrent assets are $660,000, its total current liabilities are $220,000, its long-term liabilities are $410,000, and its stockholders' equity is $400,000. Working capital is: Select one: a. $370,000 b. $150,000 c. $250,000 d. $400,000

Answer 1

Answer:

b. $150,000

Explanation:

The computation of the working capital is shown below:

= Total current assets - total current liabilities

= $370,000 - $220,000

= $150,000

We simply applied the above formula

And, the same is to be considered

Hence, the working capital is $150,000

Therefore the correct option is b. $150,000

All the other options are wrong.