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.
Shareholders' funds = ₹25,00,000
Non current liabilities = ₹4,80,000
Current liabilities = ₹10,00,000
Non current assets = ₹13,80,000
Shareholders' funds + Non current liabilities + Current liabilities = Total assets
Shareholders' funds + Non current liabilities + Current liabilities = Current assets + Non current assets
₹25,00,000 + ₹4,80,000 + ₹10,00,000 = Current assets + ₹13,80,000
39,80,000 = Current assets + ₹13,80,000
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