Question

Based on the following data, what is the amount of working capital? Accounts payable $30,000 Accounts receivable 60,000 Accrued liabilities 5,000 Cash 40,000 Intangible assets 50,000 Inventory 69,000 Long-term investments 80,000 Long-term liabilities 100,000 Marketable securities 30,000 Fixed assets 670,000 Prepaid expenses 1,000

a. $165,000
b. $30,000
c. $130,000
d. $95,000

Answer 1

a. $165,000

Step-by-step explanation:

Total current assets=Accounts receivable+Cash+Inventory+Prepaid expenses+Temporary investments

=(60000+40000+69000+1000+30000)=$200,000

Total current liabilities=Accounts payable+Accrued liabilities

=(30000+5000)=$35000

Working capital=Total current assets-Total current liabilities

=(200,000-35000)

=$165000.