Use the following information to answer the given question \(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and...

Working capital is the difference between current assets and current liabilities. Current assets are assets that are expected to be converted to cash within a year or a normal operating cycle, whichever is longer. Current liabilities are liabilities that are expected to be paid within a year or a normal operating cycle, whichever is longer. From the given information, we can calculate the current assets and current liabilities as follows: Current assets = stock + debtors + cash in bank + cash in hand = 15,000 + 12,500 + 7,500 + 2,000 = N37,000 Current liabilities = accrued rent + sundry creditors = 500 + 9,500 = N10,000 Therefore, the working capital is: Working capital = Current assets - Current liabilities = N37,000 - N10,000 = N27,000 Therefore, the value of working capital is N27,000. Option A) N27,000 is the correct answer.