Question

Harding Company Accounts payable $40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000...

Harding Company
Accounts payable $40,000
Accounts receivable 65,000
Accrued liabilities 7,000
Cash 30,000
Intangible assets 40,000
Inventory 72,000
Long-term investments 110,000
Long-term liabilities 75,000
Marketable securities 36,000
Notes payable (short-term) 30,000
Property, plant, and equipment 625,000
Prepaid expenses 2,000

What is the amount of working capital?

a.$238,000

b.$128,000

c.$203,000

d.$168,000

Homework Answers

Answer #1
Accounts receivable $    65,000
Cash $    30,000
Inventory $    72,000
Marketable securities $    36,000
Prepaid expenses $      2,000
Total current assets $ 205,000
Accounts payable $ 40,000
Accrued liabilities $    7,000
Notes payable (short-term) $ 30,000
Total current liabilities $ 77,000
Working capital = Current assets - Current liabilities
Working capital = $205,000 - $77,000
Working capital = $128,000

Answer is B. $128,000

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