Question

Use the following data to determine the total amount of working capital.

Novak Corp. Balance Sheet December 31, 2022
Cash $189000
Accounts payable $206000
Accounts receivable 146000
Salaries and wages payable 25000
Inventory 155000
Mortgage payable 246000
Prepaid insurance 94800
Total liabilities $477000
Stock investments (long-term) 264000
Land 255000
Buildings $314000
Common stock $343800
Less: Accumulated depreciation (60000) 254000
Retained earnings 744000
Goodwill 207000
Total stockholders' equity $1087800
Total assets $1564800
Total liabilities and stockholders' equity $1564800 $173800 $353800 $123800 $383800

Answer 1

$353,800

Step-by-step explanation:

Working Capital = Current Assets - Current Liabilities

where,

CA = $146000 + $189000 + $155000 + $94800 = $584,800

CL = $206000 + $25000 = $231,000

therefore,

Working Capital = $584,800 - $231,000 = $353,800