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26 April, 02:04

In 2016, Southwest Airlines had negative net working capital of $ (2,346) million and current assets of $4,498 million. The firm's current liabilities are: A. $2,152 million B. $6,844 million C. $2,346 million D. $5,236 million E. There is not enough information to calculate the amount.

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  1. 26 April, 02:09
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    B. $6,844 million.

    Explanation:

    We know,

    Net working capital = Current asset - Current liabilities

    Given,

    Net working capital = $ (2,346) million

    Current asset = $4,498 million

    Putting the value into the formula, we can get

    Net working capital = Current asset - Current liabilities

    Current liabilities = - Net working capital + Current asset

    Current liabilities = - (2,346) + $4,498

    Current liabilities = $2,346 + $4,498

    Current liabilities = $6,844 million.

    Option B is the correct answer.
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