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

Study for the NHA Line of Service Exam. Utilize flashcards and multiple choice questions, each with detailed explanations and hints. Excel in your exam preparation!

Total working capital is calculated by subtracting current liabilities from current assets. It is a key financial metric that helps assess the liquidity and operational efficiency of a facility.

In the case of Facility X, if the financial data provided in the exam indicated that current assets exceeded current liabilities by $3,765,000, this would clearly define the total working capital. The ability to maintain a substantial working capital indicates that the facility is likely managing its resources effectively, maintaining enough short-term assets to cover its short-term liabilities, which is crucial for smooth operations and financial stability.

The other figures would not reflect the true working capital calculated from the financial data you provided. If the calculations had yielded lower values such as $30,000, $35,000, or $3,365,000, these amounts likely do not represent the balance after deducting current liabilities from current assets, based on the data that led to the correct figure of $3,765,000.

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