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

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

balaji rao answered 2 years ago

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