Question

Use the following data to determine the total amount of working capital.

Alpha Co.
Balance Sheet
December 31, 2013
Cash		$192000		Accounts payable	$204000
Accounts receivable		142000		Salaries and wages payable	31500
Inventory		170000		Mortgage payable	244500
Prepaid insurance		90600		Total liabilities	$480000
Stock investments		255000
Land		298000
Buildings	$323000			Common stock	$396100
Less: Accumulated depreciation	(65000)	258000		Retained earnings	743500
Trademarks		214000		Total stockholders' equity	$1139600
Total assets		$1619600		Total liabilities and            stockholders' equity	$1619600

Answer 1

Solution:

Working Capital = Current Assets - Current Liabilities

	Amount in $
Current assets:
Cash	192,000
Accounts receivable	142,000
Inventory	170,000
Prepaid Insurance	90,600
Total Current assets	594,600
Current Liabilities:
Accounts Payable	204,000
Salaries and wages payable	31,500
Total Current Liabilities	235,500
Working Capital	359,100

Total Working Capital is $359,100