From the following data, calculate the amount of working capital. $$\begin{array} { l r }
\text { Accounts payable } & 58,000 \
\text { Accounts receivable } & 47,000 \
\text { Accrued liabilities } & 3,000 \
\text { Cash } & 29,560 \
\text { Intangible assets } & 57,000 \
\text { Inventory } & 48,000 \
\text { Long-term investments } & 127,000 \
\text { Long-term liabilities } & 41,000 \
\text { Marketable securities } & 32,000 \
\text { Notes payable (short-term) } & 28,000 \
\text { Property, plant, and equipment } & 784,000 \
\text { Prepaid expenses } & 7,500
\end{array}$$
A) $98,060
B) $72,000
C) $75,060
D) $77,060

Question

From the following data, calculate the amount of working capital. $$\begin{array} { l r } 
\text { Accounts payable } & 58,000 \
\text { Accounts receivable } & 47,000 \
\text { Accrued liabilities } & 3,000 \
\text { Cash } & 29,560 \
\text { Intangible assets } & 57,000 \
\text { Inventory } & 48,000 \
\text { Long-term investments } & 127,000 \
\text { Long-term liabilities } & 41,000 \
\text { Marketable securities } & 32,000 \
\text { Notes payable (short-term) } & 28,000 \
\text { Property, plant, and equipment } & 784,000 \
\text { Prepaid expenses } & 7,500
\end{array}$$
A) $98,060
B) $72,000
C) $75,060
D) $77,060

Quizplus · Accepted Answer

Working capital is calculated as Current Assets minus Current Liabilities. Current Assets here are Accounts Receivable ($47,000) + Cash ($29,560) + Inventory ($48,000) + Marketable Securities ($32,000) + Prepaid Expenses ($7,500) = $164,060. Current Liabilities are Accounts Payable ($58,000) + Accrued Liabilities ($3,000) + Notes Payable (short-term) ($28,000) = $89,000. Therefore, Working Capital = $164,060 - $89,000 = $75,060.

From the Following Data, Calculate the Amount of Working Capital