A company's current assets are $100,000, and the total liabilities are $50,000. What is the net working capital of this company?

To determine the net working capital of a company, you subtract total liabilities from total current assets. In this scenario, the company has current assets of $100,000 and total liabilities of $50,000.

Calculating net working capital involves the following formula:

Net Working Capital = Current Assets - Total Liabilities

Plugging in the given values:

Net Working Capital = $100,000 - $50,000

Net Working Capital = $50,000

This calculation reflects the liquidity available to the company for its day-to-day operations, indicating that it has a positive working capital position. This means the company can cover its short-term liabilities with its short-term assets, a crucial aspect of financial health.

The correct answer is thus understood as it accurately reflects the calculated result of the working capital, demonstrating a sufficient cushion of current assets over current liabilities.