The working capital of mr. right is $5000.
Working capital, in a nutshell, is the cash on hand to pay your immediate, short-term commitments. You must estimate your present levels, forecast your future requirements, and think of strategies to ensure that you always have adequate cash on hand if you want to make sure that your working capital serves your demands.
Owner's equity = Rs. 8000;
Assets = Liabilities + Owner's equity (Net worth) (Cash on hand + Other assets) = Liabilities + Owner's equity is the accounting formula (Net worth)
20,000= other assets + 8,000 rupees.
Liabilities = 20000 - 8000 = 12000
Liabilities = 12000 Rupees
As a result, total assets equal Rs. plus Rs.
Amount of all assets: Rs. 12,000
working capital = 12000- 7000 = 5000.
The working capital of mr. right is 5000.
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