The records of Superstores shows a loan of #14000 from Bala; creditor #8000 and assets #190500. What is the firm’s capital?

A. #184, 000
B. #196,500
C. #212,000
D. #168,500

Correct Answer:

Option D – #168,500

Explanation

The net working capital formula is calculated by subtracting the current liabilities from the current assets.
Assets = 190,500
liabilities = 14,000 + 8,000 = 22,000
190,500 – 22,000 = 168,000 (capital)