From the following figures in the accounting books of XY company, calculate its working capital : stock #2,000; cash #1,500; Creditors #1,000; Bank overdraf...

Answer Details

To calculate the working capital of the XY company, we need to subtract the current liabilities from the current assets. Current assets include stock and cash, which have a total value of #2,000 + #1,500 = #3,500. Current liabilities include creditors and bank overdraft, which have a total value of #1,000 + #1,400 = #2,400. Therefore, the working capital of the XY company is: Working capital = Current assets - Current liabilities Working capital = #3,500 - #2,400 Working capital = #1,100 Hence, the answer is #1,100.