Assume that a certain business has $1,000 worth inventory, $1,000 cash in bank, and $10,000 receivable from customers in three months. Further, the business needs to pay a short-term loan worth $5,000 in less than six months. What might be the working capital requirement of this business?

$7,000

Explanation:

The working capital is calculated by deducting/subtracting current liabilities from current assets.

Current assets include inventory, cash and cash equivalents, accounts receivables, and other short-term liquid assets.

Current liabilities are the debts due for payments within the current financial period.

In the case, current assets will be

inventory  $1,000

cash at bank  $1,000

receivables  $10,000

total current assets = $12,000

current liabilities:  Loan $5,000

working capital = $12,000 -$5,000

=$7,000

answer; /// i believe the correct answer is (all of the above);

do u have any choices