Question

In: Accounting

What is the amount of working capital

Harding Company

Particulars                                     Amount$

Accounts payable                          40,000

Accounts Receivable                      65,000

Cash                                               30,000

Accrued Liabilities                          7,000

Intangible assets                            40,000

Inventory                                       72,000

Long term investments                 1,10,000

Long term liabilities                      75,000

Marketable securities                   36,000

Notes payable (Short term)          30,000

Property,plant & Equipment        6,25,000

Prepaid Expenses                         2,000

What is amount of Working capital

a.$2,38,000

b.$1,68,000

c.$1,28,000

d.$2,03,000

 

 

 

Solutions

Expert Solution

Calculation of amount of working capital for hoarding company

Current assets = Accounts Receivables + Cash + Inventory + marketable securities + prepaid expenses

=65,000 + 30,000 + 72,000 + 36,000 + 2,000

=$2,05,000

Current Liablities = Accounts Payable + Accrued liabilities + Note Payable

=40,000 + 7,000 + 30,000

=$77,000

Formula for calculating working capital =Current assets - Current liabilities

= $2,05,000 - $77,000

= $1,28,000

Option $1,28,000 is the correct choice

 


option $1,28,000 is the correct choice

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