The financial statements of Barker Office Furniture Company include the following items:

What is working capital for 2017?
A)$203,000
B)$61,500
C)$37,500
D)$97,500

Question

The financial statements of Barker Office Furniture Company include the following items:

What is working capital for 2017?
A)$203,000 
B)$61,500 
C)$37,500 
D)$97,500

Quizplus · Accepted Answer

B)Working capital = Current assets - Current liabilities
Working capital = (Cash $43,500 + Short-term Investments $24,000 + Net Accounts Receivable $100,000 + Merchandise Inventory $159,000)- $265,000
Working Capital = $326,500 - $265,000
Working Capital = $61,500

The Financial Statements of Barker Office Furniture Company Include the Following