McRae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

A) $380,000
B) $40,000
C) $250,000
D) $290,000

Question

Kaycee Kinnard · Accepted Answer

Final Answer : B, Explanation :  Working capital is calculated as current assets minus current liabilities. Therefore, working capital for McRae Corporation is:$380,000 (total current assets) - $340,000 (total current liabilities) = $40,000.Choice B is the correct answer.

McRae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

A) $380,000
B) $40,000
C) $250,000
D) $290,000

Definitions

Learning Objectives

Learning Objectives

Related questions

McRae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:A) $380,000B) $40,000C) $250,000D) $290,000

Definitions

Learning Objectives

Learning Objectives

Related questions

McRae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

A) $380,000
B) $40,000
C) $250,000
D) $290,000