Question

Based on the following data, what is working capital? Accounts payable $30,000 Accounts receivable 60,000 Accrued liabilities 4,000 Cash 60,000 Intangible assets 50,000 Inventory 69,000 Long-term investments 80,000 Long-term liabilities 100,000 Marketable securities 50,000 Fixed assets 670,000 Prepaid expenses 1,000

Answer 1

Answer:

Working Capital = 206,000

Explanation:

1. CURRENT ASSETS = 240,000

• Cash 60,000
• Marketable securities 50,000
• Prepaid expenses 1,000
• Accounts receivable 60,000
• Inventory 69,000

2. CURRENT LIABILITIES = 34,000

• Accounts payable $30,000
• Accrued liabilities 4,000

Working Capital = Current Assets – Current Liabilities

Working Capital = 240,000 – 34,000

Working Capital = 206,000