Question

According to the trial balance, what is the working capital?       

Trial Balance
Cash	$ 10,000
Accounts Receivable (AR)	$ 2,000
Inventory	$ 3,000
Accounts Payable (AP)	$ 2,000
Accrued Expenses (AE)	$ 3,000
Revenue	$ 15,000

• a.) (Cash + AR + Inventory) - AE

• b.) Revenue - AE

• c.) Cash + AR + Revenue

• d.) Cash + AR + Inventory

• e.) (Cash + AR + Inventory) - (AE + AP)

Answer 1

Answer: e.) (Cash + AR + Inventory) - (AE + AP)

Working capital

$    10,000.00

Working

	Cash	$    10,000.00
	Accounts receivable	$      2,000.00
	Inventory	$      3,000.00
A	Total current assets	$    15,000.00
	Accounts payable	$      2,000.00
	Accrued expenses	$      3,000.00
B	Total curret liabilities	$      5,000.00
(A-B)	Working capital	$    10,000.00