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Based on the following data, what is working capital? Accounts payable Accounts receivable Accrued liabilities Cash...


Based on the following data, what is working capital? Accounts payable Accounts receivable Accrued liabilities Cash Intangibl

Based on the following data, what is working capital? 


$$ \begin{array}{lr} \text { Accounts payable } & \$ 30,000 \\ \text { Accounts receivable } & 60,000 \\ \text { Accrued liabilities } & 4,000 \\ \text { Cash } & 60,000 \\ \text { Intangible assets } & 50,000 \\ \text { Inventory } & 69,000 \\ \text { Long-term investments } & 80,000 \\ \text { Long-term liabilities } & 100,000 \\ \text { Marketable securities } & 50,000 \\ \text { Fixed assets } & 670,000 \\ \text { Prepaid expenses } & 1,000 \end{array} $$

a. $135,000 b. $34,000 c. $206,000 d. $776,000

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Expert Solution

Answer

c. $ 206,000

Explanation:

Working Capital = Current Assets - Current liabilities

Current Assets
Accounts receivable $         60,000
cash $         60,000
Inventory $         69,000
Marketable Securities $         50,000
Prepaid expenses $           1,000
Total $      240,000
Current Liabilities
Accounts payable $         30,000
Accrued liabilities $           4,000
Total $        34,000
Working Capital $      206,000

ekkarill92 answered 2 years ago
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