Data from Dunshee Corporation\'s most recent balance sheet appear below: Year 2:
ID: 2484920 • Letter: D
Question
Data from Dunshee Corporation's most recent balance sheet appear below:
Year 2:
Current assets:
Cash………….$130
Accts. receivable……$270
Inventory…….$90
Prepaid expenses……….$10
Total current assets………$500
Total current liabilities……..$230
Year 1:
Current assets:
Cash………….$100
Accts. receivable……$290
Inventory…….$110
Prepaid expenses……….$10
Total current assets………$510
Total current liabilities……..$220
Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.
The working capital at the end of Year 2 is:
$270
$500
$770
$740
Please show all work
Explanation / Answer
Working Capital = Current Assets - Current Liabilities
Year 2
Current Assets = $500
Current Liabilities = $230
Working Capial = $500 - $230 = $270
Working Capital = $270
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