Final answer:
Unable to calculate the amount of working capital for Privett Company without specific figures for current assets and liabilities. Working capital is crucial for assessing a company's short-term financial health and operational efficiency.
Step-by-step explanation:
The question 'Based on the data for Privett Company, what is the amount of working capital?' requires information that has not been provided. Working capital is calculated as current assets minus current liabilities. To determine the amount of working capital for Privett Company, specific figures for the company's current assets and liabilities are needed. Without that data, it is not possible to calculate the working capital.
However, we can discuss the concept of working capital in general terms. Working capital is a financial metric used to assess the efficiency and short-term financial health of a company. It represents the company's ability to pay off its short-term obligations with its short-term assets. Positive working capital indicates that a company can fund its current operations and invest in future activities, while negative working capital might suggest potential liquidity issues.
Since the question pertains to a different calculation, the provided details concerning present value calculations and accounting profit are not relevant to calculating working capital. For accounting profit, one would subtract all explicit costs from total sales revenue.