Dear, here is the task
Inventory = 2149
AR = 3200
Current Assets = 5394
AP = 2865
Overdraft = 1500
Current Liab. = 4365
In answers Net working capital is calculated as 5394 - 4365 = 984;
but in my understanding we should to exclude the Overdraft and it should be 5394-2865 = 2529
Am I wrong? or BPP has error?
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Q85 BPP
5y ago#1The BPP answer is correct.
Working capital is current assets less current liabilities, and an overdraft is a current liability.
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