The financial statements for Watertown Service Company include the following ite
ID: 2513400 • Letter: T
Question
The financial statements for Watertown Service Company include the following items:
2017
2016
Cash
$52,500
$44,000
Short-term Investments
31,000
11,000
Net Accounts Receivable
53,000
51,000
Merchandise Inventory
162,000
49,000
Total Assets
530,000
549,000
Accounts Payable
130,500
126,000
Salaries Payable
16,000
18,000
Long-term Note Payable
55,000
56,000
Compute working capital for 2017.
a. 137000
b. 97000
c. 152000
d. 29000
2017
2016
Cash
$52,500
$44,000
Short-term Investments
31,000
11,000
Net Accounts Receivable
53,000
51,000
Merchandise Inventory
162,000
49,000
Total Assets
530,000
549,000
Accounts Payable
130,500
126,000
Salaries Payable
16,000
18,000
Long-term Note Payable
55,000
56,000
Compute working capital for 2017.
a. 137000
b. 97000
c. 152000
d. 29000
Explanation / Answer
Compute working capital 2017 :
Current assets = 298500
Current liabilities = 146500
Working capital = Current assets-current liabilities
= 298500-146500
Working capital = 152000
so answer is c) 152000
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