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WAEC Commerce 2016 Question 14

Question 14

Business Calculations

Use the following information relating to Bala Enterprises (₦): Premises 32,000; Motor vehicle 15,000; Debtors 15,000; Stock 20,000; Creditors 10,000.
What is the value of the working capital?

  1. A.₦47,000
  2. B.₦35,000
  3. C.₦25,000
  4. D.₦10,000
Show the answer and explanation

Answer: C (₦25,000)

Explanation

Working capital = current assets − current liabilities = 35,000 − 10,000 = ₦25,000.