Question Mr. Right has total assets of $20,000 and owner's equity of $8,000. Its current assets are worth $11,000 and long-term liabilities $7,000. Calculate the working capital of Mr. Right. Select one: a. $9,000 b. $4,000 c. $5,000 d. $6,000

B6IIZY The Asker · Accounting

Transcribed Image Text: Mr. Right has total assets of $20,000 and owner's equity of $8,000. Its current assets are worth $11,000 and long-term liabilities $7,000. Calculate the working capital of Mr. Right. Select one: a. $9,000 b. $4,000 c. $5,000 d. $6,000
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Transcribed Image Text: Mr. Right has total assets of $20,000 and owner's equity of $8,000. Its current assets are worth $11,000 and long-term liabilities $7,000. Calculate the working capital of Mr. Right. Select one: a. $9,000 b. $4,000 c. $5,000 d. $6,000
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WLE4DC

Working capital of Mr. Right = (d) 6000 dollars Above answer is explained below in detail: calculation of working capital of Mr. Righti-formula for calculating working capital =[current Assets - Curract liabilifin]curlact Assets =$11000cuvrent liabilities =>= Total assets - owner's equity - long termliabilities]{:[=$20000-$8000-$7000],[=$5000],[:." wolking capilal "=$11000-$5000] ... See the full answer