Excerpts from Shelton Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,320 and the cost of goods sold was $890.
-The working capital at the end of Year 2 is:
A) $370 thousand
B) $1,010 thousand
C) $910 thousand
D) $680 thousand

Question

Excerpts from Shelton Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,320 and the cost of goods sold was $890.
-The working capital at the end of Year 2 is:
A) $370 thousand 
B) $1,010 thousand 
C) $910 thousand 
D) $680 thousand

Quizplus · Accepted Answer

The correct answer is A because the working capital at the end of Year 2 is $370 thousand. This is calculated by taking the current assets of $1,010 thousand and subtracting the current liabilities of $640 thousand.

Excerpts from Shelton Corporation's Most Recent Balance Sheet Appear Below