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I don't understand how to compute working capital with contractual obligations.
I don't understand how to compute working capital with contractual obligations. I got the question 'without contractual obligations' by computing current assets divided by current liabilities but I am unsure as to how to compute it with contractual obligations as described in the question.
It is given that the company reported $50,060 in current assets and $21394 in total current liabilities. It then gives a chart full of numbers regarding different contractual obligations the company has over the next 5 years. The question says to compute working capital both with and without contractual obligations.
