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WAEC Commerce 2015 Paper

Question : 14

Total: 50

Solution:

Concept:

Working capital measures a business's short-term liquidity by comparing its current assets to its current liabilities.

Explanation:

Working capital = Current assets - Current liabilities.

Here, current assets are debtors and stock:

15,000 + 20,000 = 35,000

Creditors of

10,000

are the only current liability.

So, working capital =

35,000 - 10,000 = 25,000

Answer:

25,000

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