As per the Financial Statement of X ltd, its shareholders' funds are ₹25,00,000. Non current liabilities are ₹4,80,000 and current liabilities are ₹10,00,000. Non current assets are ₹13,80,000. Working capital of the company is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹16,00,000
Total of the Balance Sheet:
= Shareholders’ funds + Non-current liabilities + Current liabilities
= ₹25,00,000 + ₹4,80,000 + ₹10,00,000
= ₹39,80,000
Current assets:
= Total assets − Non-current assets
= ₹39,80,000 − ₹13,80,000
= ₹26,00,000
Working capital:
= Current assets − Current liabilities
= ₹26,00,000 − ₹10,00,000
= ₹16,00,000