The financial statements for Watertown Service Company include the following items:

Compute working capital for 2017.
A)$137,000
B)$97,000
C)$152,000
D)$29,000

Question

The financial statements for Watertown Service Company include the following items:

Compute working capital for 2017.
A)$137,000 
B)$97,000 
C)$152,000 
D)$29,000

Quizplus · Accepted Answer

C)Working capital = Current assets - Current liabilities
Working capital = (Cash $52,500 + Short-term Investments $31,000 + Net Accounts Receivable $53,000 + Merchandise Inventory $162,000)- (Accounts Payable $130,500 + Salaries Payable $16,000)
Working Capital = $298,500 - 146,500
Working Capital = $152,000

The Financial Statements for Watertown Service Company Include the Following