The financial statements of Barker Office Furniture Company include the following items
2017 2016
Cash $52,500 $49,000
Short-term Investments 32,000 17,000
Net Accounts Receivable 92,000 99,000
Merchandise Inventory 159,000 144,000
Total Assets 531,000 551,000
Total Current Liabilities 267,000 292,000
Long-term Note Payable 60,000 55,000
What is working capital for 2017?
A) $204,000
B) $68,500
C) $36,500
D) $90,500
B .B)
Working capital = Current assets - Current liabilities
Working capital = (Cash $52,500 + Short-term Investments $32,000 + Net Accounts Receivable $92,000 + Merchandise Inventory $159,000 ) - $267,000
Working Capital = $335,500 - $267,000
Working Capital = $68,500
You might also like to view...
If variable costs decrease, and all other factors remain the same, the margin of safety will become larger
Indicate whether the statement is true or false
The risk that an investor will be forced to place earnings from a loan or security into a lower yielding investment is known as
A. liquidity risk. B. reinvestment risk. C. credit risk. D. foreign exchange risk. E. off-balance-sheet risk.