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Based on the following data, what is working capital? Accounts payable Accounts receivable Accrued liabilities Cash Intangibl

Based on the following data, what is working capital? 


$$ \begin{array}{lr} \text { Accounts payable } & \$ 30,000 \\ \text { Accounts receivable } & 60,000 \\ \text { Accrued liabilities } & 4,000 \\ \text { Cash } & 60,000 \\ \text { Intangible assets } & 50,000 \\ \text { Inventory } & 69,000 \\ \text { Long-term investments } & 80,000 \\ \text { Long-term liabilities } & 100,000 \\ \text { Marketable securities } & 50,000 \\ \text { Fixed assets } & 670,000 \\ \text { Prepaid expenses } & 1,000 \end{array} $$

a. $135,000 b. $34,000 c. $206,000 d. $776,000

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Answer #1

Answer

c. $ 206,000

Explanation:

Working Capital = Current Assets - Current liabilities

Current Assets
Accounts receivable $         60,000
cash $         60,000
Inventory $         69,000
Marketable Securities $         50,000
Prepaid expenses $           1,000
Total $      240,000
Current Liabilities
Accounts payable $         30,000
Accrued liabilities $           4,000
Total $        34,000
Working Capital $      206,000
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