Question:
From the following calculate Gross Working capital and Net Working capital, Creditors ₹10000, cash ₹20000, stock ₹5000.
From the following calculate Gross Working capital and Net Working capital, Creditors ₹10000, cash ₹20000, stock ₹5000.
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Gross Working Capital includes current assets, and Net Working Capital accounts for creditors.
Updated On: Apr 29, 2025
- ₹35000, ₹5000
- ₹15000, ₹25000
- ₹25000, ₹15000
- ₹25000, ₹10000
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The Correct Option is C
Solution and Explanation
Gross Working Capital = Cash + Stock = ₹20000 + ₹5000 = ₹25000.
Net Working Capital = Gross Working Capital
- Creditors = ₹25000
- ₹10000 = ₹15000.
- Creditors = ₹25000
- ₹10000 = ₹15000.
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