Question

use the following information to calculate the working capital requirement: - cash and equivalents = $15 - accounts receivable = $115 - inventory = $25 - accounts payable = $30 - accruals = $10 - short - term debt = $60 options: -140, 55, 100, 115

Explanation:

Step1: Calculate Current Assets

Current Assets = Cash and Equivalents + Accounts receivable + Inventory
$= 15 + 115 + 25 = 155$

Step2: Calculate Current Liabilities

Current Liabilities = Accounts payable + Accruals + Short - term debt
$= 30 + 10 + 60 = 100$

Step3: Calculate Working Capital Requirement

Working Capital Requirement = Current Assets - Current Liabilities
$= 155 - 100 = 55$

Answer:

55