Question

Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores.

	Debit		Credit
Accounts receivable–trade	840
Building and equipment	920
Cash–checking	34
Interest receivable	30
Inventory	16
Land	150
Notes receivable (long-term)	450
Petty cash fund	5
Prepaid rent	20
Supplies	8
Trademark	40
Accounts payable–trade			560
Accumulated depreciation			80
Additional paid-in capital			485
Allowance for uncollectible accounts			20
Cash dividends payable			30
Common stock, at par			15
Income tax payable			65
Notes payable (long-term)			910
Retained earnings			308
Deferred revenues			40
TOTALS	2,513		2,513

What is the amount of working capital for Symphony?

Answer 1

Amount of Working capital for Symphony is the difference between current assets and current liabilities.

Current Assets	Amount
Accounts receivable–trade	840
Cash–checking	34
Interest receivable	30
Inventory	16
Petty cash fund	5
Prepaid rent	20
Supplies	8
Total current assets (a)	953
Current Liabilities
Accounts payable–trade	560
Accumulated depreciation	80
Allowance for uncollectible accounts	20
Cash dividends payable	30
Income tax payable	65
Deferred revenues	40
Total current liabilities (b)	795
Working Capital (a-b)	158