Financial statements for Maraby Corporation appear below: Maraby Corporation's working capital (in thousands of dollars) at the end of Year 2 was closest to:
A) $260
B) $620
C) $360
D) $990

Question

Financial statements for Maraby Corporation appear below:  Maraby Corporation's working capital (in thousands of dollars) at the end of Year 2 was closest to:
A) $260 
B) $620 
C) $360 
D) $990

Quizplus · Accepted Answer

Working capital is calculated as current assets minus current liabilities.

For Maraby Corporation at the end of Year 2:

Current assets = $1,345 + $430 + $195 = $1,970

Current liabilities = $1,450 + $260 = $1,710

Working capital = $1,970 - $1,710 = $260

Therefore, the closest answer is A) $260.

Financial Statements for Maraby Corporation Appear Below: Maraby Corporation's