dy a quesu iol latef revlew, select the \"Mark for review\" button. . You must a
ID: 426039 • Letter: D
Question
dy a quesu iol latef revlew, select the "Mark for review" button. . You must answer all questions before you can submit the exam for grading . To see a list of the questions you have answered (or still need to answer), click "Review My Answ . You can exit the exam at any point by clicking "Save & Exit" Your work will be saved, but your an return to the exarn at a later date to complete and submit it for grading. Question 24 of 50 : Select the best answer for the question. prtion of the balance sheet data for SPK Corporation is shown below in nmilions (M) Current assets $6M Current liabilities$3M What is SPK Corporation's working capital? O A. $6M O B. $4.5M C. $3M O D. S9M Mark for review Will be highlighted on the review page)Explanation / Answer
Working capital is a financial metric which represents operating liquidity available with the company to run its day to day operation. Working capital is calculated as “ Current asset minus Current liability”. Working capital is also an indicator of company’s liquidity , health and solvency.
Following details are provided :
Current assets = $ 6 million
Current liability = $ 3 million
Therefore, SPK corporation’s working capital
= Current asset – Current liability
= $ 6 million - $ 3 million
= $ 3 million
SPK CORPORATION’S WORKING CAPITAL : C ) $3 MILLION
SPK CORPORATION’S WORKING CAPITAL : C ) $3 MILLION
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