Given the following accounts and balances, calculate the working capital. Accoun
ID: 2419316 • Letter: G
Question
Given the following accounts and balances, calculate the working capital.
Accounts Payable, $6,554
Accounts Receivable, $10,026
Accumulated Depreciation – Buildings, $33,320
Accum. Depr. – Furn., & Fixt., $18,534
Buildings, $94,144
Capital Stock, $15,289
Cash, $20,380
Dividends, $11,136
Furniture & Fixtures, $72,982
Income Taxes Payable, $2,810
Interest Payable, $4,155
Inventory, $40,817
Land, $135,480
Paid-in Capital in Excess of Par, $74,485
Prepaid Rent, $3,042
Retained Earnings, $90,065
Long-term Notes Payable due in 10 annual equal installments after today, $300,000
Marketable Securities, $5,644
is there a formula of something?
Accounts Payable, $6,554
Accounts Receivable, $10,026
Accumulated Depreciation – Buildings, $33,320
Accum. Depr. – Furn., & Fixt., $18,534
Buildings, $94,144
Capital Stock, $15,289
Cash, $20,380
Dividends, $11,136
Furniture & Fixtures, $72,982
Income Taxes Payable, $2,810
Interest Payable, $4,155
Inventory, $40,817
Land, $135,480
Paid-in Capital in Excess of Par, $74,485
Prepaid Rent, $3,042
Retained Earnings, $90,065
Long-term Notes Payable due in 10 annual equal installments after today, $300,000
Marketable Securities, $5,644
Explanation / Answer
Working Capital = Current Assets - Current Liabilities
Current Assets = Cash + Prepaid Rent +Accounts Receivable + Inventory + Marketable Securities
= 20380 + 3042 + 10026 + 40817 + 5644
= $ 79909
Current Liabilities = Accounts Payable +Interest Payable + Income tax Payable
= 6554 + 4155 + 2810
= $ 13519
Working Capital = $ 79909 - $ 13519
= $ 66390
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.