The rain dripped down the windows and melted into the waiting sidewalk several stories below. It occurred to Alex W that it had been raining nonstop for several days. "If it continues like this," he thought, "It'll drive weathermen out of business." He put his newspaper down and stared disinterestedly into the milk and cereal in front of him.

The doorbell rang out across the room. W didn't notice. The doorbell rang again. W yawned, pried himself from his chair, and walked to the door. Through the peephole he saw three men in classy black suits. He didn't know why, but he suddenly had the urge to flee -- no, hide! Panicked, he fled the door and was running to his bathroom when the door came crashing open.

W tripped over dirty laundry and landed as a limp heap on the floor. "Mister Alex W, I presume?" said one of the suited men.

"That's well, me..." W mumbled. "My name I mean..." he continued nervously. And then added, "Don't wear it out!" The attempt at amicability died in the apprehensive atmosphere.

"Herr W, do you know what you have done?" inquired another in a German accent. W laughed, though he knew not exactly why he laughed.

"Given your situation I am surprised, no, astounded that you are laughing, Mr. W," replied the third and last of the men. He acted as the leader. "Now, come with us, you have been summoned."

"Why should I? What have I done? Who are you?" blurted W. "This is outrageous! I'll have you know that..."

One of the suited men waved a finger. W stopped. "The question is who are you? Or rather what are you? And we will ascertain that soon enough, criminal. Yes, yes indeed I might say," said the one with the German accent. "Come along now, we wouldn't want to leave the Inquisitor waiting."

Together they walked out of W's apartment and down the dingy hallways of the tenement building. Through the dimness of morning, art-deco lamps illuminated the ceiling as a continuous line of shadowed circles. W was not looking up, however. His face hung down, outrageously ashamed -- eyes staring blankly. For the first time he noticed the building's harsh, yellowing carpet.

W, feeling he had nothing to lose, asked, "Surely you know what my crime is...no?"

W did not know which of the men replied, but heard, "I hear it has something to do with working capital."

"Working capital?! I don't even know what that is... I don't even have a smidgeon of a clue!!" W's hapless cry echoed in the empty hall.

***What is working capital?***

1) Total assets.
2) Total assets minus total liabilities.
3) Current assets minus current liabilities.
4) None of the above.

Liquidity information provided by Joe Louderback.

The answer is 3) Current assets minus current liabilities. This week in Bust The Tipsters, we're looking at liquidity.

The leader of the crew looked to both of his men for approval and then stated, "I am not permitted to divulge information. However, I will make an exception this one time. Mister W, working capital, sometimes redundantly called 'net working capital,' is an important measure of liquidity -- the ability to pay debts as they mature. Working capital is a measure of the margin current assets hold over current liabilities. High working capital indicates that the company should be able to meet its obligations with something to spare. Working capital can also be negative, and in some industries, negative working capital is the norm."

The leader paused for effect before finishing his carefully calculated speech, "Of course, bear in mind that one can only develop indications or tendencies when looking at financial statements. One cannot often reach firm conclusions for a number of reasons. For instance, electric utilities should have much less working capital than manufacturers because utilities do not have inventories, a major current asset."

W was then shoved into a black car that drove off into the mysterious morning. A motley-clad, bell-capped passerby on the street overheard W's last cry, "Yeah, you can lecture all you want, but what does this have to do with me...I never..." His words were cut off as the car door slammed shut.

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