What is the total working capital of Facility X based on its financial data?

Total working capital is calculated by subtracting current liabilities from current assets. This metric indicates the liquidity position of a facility, reflecting its ability to cover short-term obligations with short-term assets. In this case, if the selected answer indicates that Facility X has a total working capital of $3,765,000, it suggests that the current assets substantially exceed the current liabilities by that amount.

A higher working capital figure typically means that the facility is in a strong position to manage its day-to-day operations and meet its financial commitments. It often implies effective operational management and the capacity for growth, as there are more resources available to invest in short-term opportunities or to handle unexpected expenses.

To verify the accuracy of the working capital figure, one would typically review the balance sheet details regarding current assets, which might include cash, accounts receivable, and inventory, as well as current liabilities, such as accounts payable and short-term debt. The difference resulting in $3,765,000 indicates a positive working capital scenario for Facility X.