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Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021. Account...

Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021.

Account Title Debits Credits
Cash and cash equivalents 42,000
Accounts receivable 219,000
Raw materials inventory 48,000
Notes receivable 127,000
Interest receivable 7,000
Interest payable 10,000
Investments 51,000
Land 160,000
Buildings 1,410,000
Accumulated depreciation—buildings 800,000
Work in process inventory 26,000
Finished goods inventory 86,000
Equipment 460,000
Accumulated depreciation—equipment 290,000
Franchise (net of amortization) 1,440,000
Prepaid insurance (for the next year) 72,000
Deferred revenue 72,000
Accounts payable 360,000
Notes payable 620,000
Salaries payable 10,000
Allowance for uncollectible accounts 36,000
Sales revenue 8,620,000
Cost of goods sold 560,000
Salaries expense 60,000


Additional information:

  1. The notes receivable, along with any accrued interest, are due on November 1, 2022.
  2. The notes payable are due in 2026. Interest is payable annually.
  3. The investments consist of equity securities of other corporations. Management does not intend to sell any of the securities in the next year.
  4. Deferred revenue will be recognized equally over the next 18 months.


Required:
Determine the company’s working capital at December 31, 2021. (Do not round your intermediate calculations.)

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Expert Solution

ekkarill92 answered 3 years ago
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