The following was extracted from the books of MEGA COMPANY NIG. LTD | | ₦ | | Trade debtors | 350,000 | | Fixtures and fittings | 600,000 | | Cash at bank | 25,000 | | Cash in hand | 5,500 | | Trade creditors | 116,500 | | Bank overdraft | 7,500 | | Building | 950,000 | | Motor van | 35,000 | The working capital of the company is ____________
A. ₦156,000 B. ₦280,000 C. ₦565,000 D. ₦256,500  Correct Answer: DExplanationWorking capital = Current Assets - Current Liabilites
= (350,000 + 25,000 + 5,500) - ( 116,500 + 7,500)
= 380,500 - 124, 000
= ₦256,500 |
