Calculate the Net Working Capital, from the following information of Mr. Sahib.
(a) Short term loan - 1,00,000/-
(b) Debtors - 65,000/-
(c) Creditors 35,000/-
(d) Prepaid Expense - 15,000/-
(e) Cast at Bank - 80,000/-
Answer & explanation
Correct answer: option 3
Sure, I can help you calculate the Net Working Capital for Mr. Sahib.
Net Working Capital = Current Assets - Current Liabilities
Current Assets:
- Debtors - 65,000/-
- Prepaid Expense - 15,000/-
- Cast at Bank - 80,000/-
Total Current Assets = 160,000/-
Current Liabilities:
- Short term loan - 1,00,000/-
- Creditors - 35,000/-
Total Current Liabilities = 135,000/-
Net Working Capital = 160,000 - 135,000 = 25,000/-
Therefore, the Net Working Capital of Mr. Sahib is 25,000/-.