Question

This Question: 2 pts 37 of 40 (33c The financial statements of Carrier Office Furniture Company include the following items: 2019 2018 Cash Short-term Investments Net Accounts Receivable Merchandise Inventory Total Assets Total Current Liabilities Long-term Note Payable $49,500 29,000 97,000 162,000 534,000 271,000 57.000 $45,000 10,000 103,000 150,000 550,000 293,000 52,000 What is working capital for 2019? O A. $206,000 O B. $66,500 O c. $37,500 OD. $95,500 Click to select your answer sty W

Answer 1

Calaculation of working capital for the year 2019:

The correct option is

• B. $66500

Explanation:

Working capital = Current Assets - Current Liabilities

Given,

Current liabilities for 2019 = $271000

Now,

Current Assets for 2019

= Cash + Short term investment + Net accounts receivable + Merchandise inventory

= $49500 + $29000 + $97000 + $162000

= $337500

Therefore,

Working capital for the year 2019

= Current assets - Current liabilities

= $337500 - $271000

= $66500

______×_______

Let me know if you have any queries, All the best,

Kindly UPVOTE.

Keep Learning