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