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Following are the balances of current assets and current liabilities of X ltd., Cash – Rs.20,000; outstanding expenses- Rs.5000; Creditors- Rs.15,000; Debtors-Rs.50,000; Short term loans- Rs.4000; Short term investments-Rs.30,000; Long term loansRs.1,00,000; Stock-Rs.70,000. Calculate the gross and net working capital of X Ltd., |
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Answer» Gross Working capital = Sum total of all Current Assets = Cash + Debtors + Short term investment + Stock = 20,000+50,000+30,000+70,000= Rs.1,70,000 Net working capital = Current Assets-Current Liabilities Current Liabilities = Outstanding expenses + Creditors + Short term loans = 5000 + 15,000 + 4000= Rs. 24,000 Net working capital = 1,70,000-24,000= Rs. 1,46,000 |
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