Question

Abril Industries has Cash of $30,000, Accounts receivable of $17,000, inventory of $20,000, equipment of $100,000 and accounts payable of $34,000. What is the company's: Working Capital ------------------------

Answer 1

The working capital for Abril Industries is calculated by subtracting current liabilities from current assets. With a total current assets sum of $67,000 and current liabilities of $34,000, the working capital is $33,000.

Step-by-step explanation:

To calculate the working capital for Abril Industries, you subtract the company's current liabilities from its current assets. The formula is:

Working Capital = Current Assets - Current Liabilities

In this case, the current assets include:

• Cash: $30,000
• Accounts Receivable: $17,000
• Inventory: $20,000

Summing these gives:

Total Current Assets = $30,000 + $17,000 + $20,000 = $67,000

The current liability is:

• Accounts Payable: $34,000

Working Capital = Total Current Assets - Accounts Payable = $67,000 - $34,000 = $33,000

Hence, the working capital of Abril Industries is $33,000.