The value of current liabilities will be $ 1,100.
Current asset = Total asset - Fixed asset
= $12,600 - $ 9,700
= $ 2,900
Net working capital = $ 1,800
Current Liabilities = Current Asset - Net working capital
= $ 2,900 - $ 1800
= $1,100
Current liabilities are the short-term financial obligations of a company that are due within one year or within a normal operating cycle. An operating cycle, also known as the cash conversion cycle, is the amount of time it takes for a business to purchase inventory and convert it to cash from sales. Money owed to suppliers in the form of accounts payable is an example of a current liability.
The current assets to current liabilities ratio are critical in determining a company's ability to pay its debts on time. Current liabilities are usually settled with current assets, which are assets that are depleted within a year.
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