Question

Based on the following data for Privett Company, what is the amount of working capital? Privett Company Accounts payable $33,
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Answer #1

Ans: $137399

Explanation:

Working capital= current assets-current liabiliites

Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.

Current liabilities include accounts payable, short-term debt,Accrued expenses, dividends, and notes payable as well as income taxes owed

Current assets=Accounts receivable+cash+inventory+Prepaid expenses+marketable securities

=74533+20940+76403+2618+32711

=207205

Current liabilities=Accounts payable+ accrued liabilities+Notes payable

=33666+6614+29526

=69806

Working capital=207205-69806

=137399

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