If the stock is 1100 and debtors are 50% from receivables and receivables are 3200, equity 300 account payables 3000, the cash is 100, then the gross working capital is Select one: a

Finance Jan 22, 2021

If the stock is 1100 and debtors are 50% from receivables and receivables are 3200, equity 300 account payables 3000, the cash is 100, then the gross working capital is Select one: a. None of the options O b. 9300 O c. 4600 O d. 3300 O e. 6000

Expert Solution

Gross Working Capital is total value of current assets

Gross Working Capital = Receivables + Inventory + Cash and Marketable Securities + Short Term Investments + Any other Current Asset

Debtors= 50% of receivable i.e 3200*50%=1600

Gross working capital =3200+1100+100+1600=6000

So option e.6000 is correct answer

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