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

Question

Business

Henry Manning

4 June, 17:43

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

+3

Answers (1)

Know the Answer?

Pongo · Answer 1

a. $165,000

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.