Read the following information and answer the question.
| PARTICULARS | AMOUNT ( ₹) |
| Cost of revenue from operations | 18,00,000 |
| Inventory | 3,60,000 |
| Trade receivables | 1,70,000 |
| Marketable securities | 50,000 |
| Cash and bank balance | 20,000 |
| Trade payables | 1,40,000 |
| Provision for tax | 10,000 |
Calculate working capital.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹4,50,000.
Current liabilities = Trade payables + Provision for tax
= 1,40,000 + 10,000
= ₹1,50,000
Current assets = Inventory + trade receivables + marketable securities + cash and bank balance
= 3,60,000 + 1,70,000 + 50,000 + 20,000
= ₹6,00,000
Working capital = current asset - current liabilities
= 6,00,000 - 1,50,000
= ₹4,50,000