Question

    The following balances are available for a company:

    Cash: ₹5L, Inventory: ₹12L, Debtors: ₹10L, Short-term investments: ₹3L Accounts payable: ₹8L, Short-term loans: ₹4L Calculate: (i) Gross working capital and (ii) Net working capital
    A ₹30L and ₹18L Correct Answer Incorrect Answer
    B ₹28L and ₹16L Correct Answer Incorrect Answer
    C ₹30L and ₹16L Correct Answer Incorrect Answer
    D ₹25L and ₹12L Correct Answer Incorrect Answer

    Solution

    Gross WC = Sum of all current assets = 5 + 12 + 10 + 3 = ₹30L Current liabilities = 8 + 4 = ₹12L Net WC = 30 – 12 = ₹18L

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