Excerpts from Deandrade Corporation\'s most recent balance sheet appear below: C

Question

Excerpts from Deandrade Corporation's most recent balance sheet appear below:

Current assets:                                     Y2                   Y1
Cash.........................................$100              $110
Accounts Receivable.........................80                 100
Inventory.....................................130                 140
Prepaid expenses.............................90                   90
Total current assets                               400                 440
Total current liabilities..................... 330                 370

Sales on account in Year 2 amounted to $1,360 and the cost of goods sold was $830.

The working capital at the end of Year 2 is:

a. $400 b. $70 c. $750 d. $700

Explanation / Answer

400-330=70 (b)

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