In this workout, we've been asked to calculate working capital.

At this point if you would like to pause the recording and have a go on your own please do.

We've been provided with a balance sheet for year two and Year One.

And I know that working capital is going to be the current assets minus the current liabilities.

At the top of our balance sheet I can see assets.

And below that we have liabilities and equity.

Going back up to the asset part of our balance sheet.

We are looking for the total current assets and we can see for your two. That's eight.

Four one eight one eight.

And in year one, it was seven nine one six one seven. So that's our first part of working capital.

current assets for you to and Year One Now we need the current liabilities for both years. So we are going to go to the liability section of the balance sheet.

And there we see total current liabilities of 5 6 9 1 7 2 402 and 442-182 for you one.

and all that's left to do is Calculate working capital, which is current assets minus current liabilities