Read the following information and answer the following questions.
Net profit after tax = ₹6,50,000
12.5% debentures = ₹8,00,000
Income tax = 50%
Fixed assets at cost = ₹24,60,000
Depreciation reserve = ₹4,60,000
Current assets = ₹15,00,000
Current liabilities = ₹7,00,000
Capital employed = ₹28,00,000
Calculate working capital of the company?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹8,00,000.
Working capital = Current assets - Current liabilities
= 15,00,000 - 7,00,000
= ₹8,00,000