Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The working capital at the end of Year 2 is:
A) $270
B) $500
C) $770
D) $740

Question

Data from Dunshee Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The working capital at the end of Year 2 is:
A) $270 
B) $500 
C) $770 
D) $740

Quizplus · Accepted Answer

Working capital = Current assets - Current liabilities
From the balance sheet, we can see that:
Current assets = $1,350
Current liabilities = $1,080
Therefore, working capital = $1,350 - $1,080 = $270
The sales and cost of goods sold information is not relevant to calculating the working capital.

Data from Dunshee Corporation's Most Recent Balance Sheet Appear Below