Financial statements for Marcalo Company appear below:
-Marcalo Company's working capital (in thousands of dollars) at the end of Year 2 was closest to:
A) $220
B) $580
C) $360
D) $1,580

Question

Financial statements for Marcalo Company appear below:  
-Marcalo Company's working capital (in thousands of dollars) at the end of Year 2 was closest to:
A) $220 
B) $580 
C) $360 
D) $1,580

Quizplus · Accepted Answer

Working capital can be calculated by subtracting current liabilities from current assets. 
At the end of Year 2:
Current assets = $1,060
Current liabilities = $840
Working capital = $1,060 - $840 = $220 (in thousands of dollars) 
Therefore, the closest option is A) $220.

Financial Statements for Marcalo Company Appear Below