Refer to the following selected financial information from McCormik,LLC.Compute the company's working capital for Year 2.
A)$232,700.
B)$220,600.
C)$147,200.
D)$111,700.
E)$142,700.

Question

Refer to the following selected financial information from McCormik,LLC.Compute the company's working capital for Year 2. 
A)$232,700. 
B)$220,600. 
C)$147,200. 
D)$111,700. 
E)$142,700.

Quizplus · Accepted Answer

Working capital is calculated by subtracting current liabilities from current assets. In Year 2, current assets are $832,700 and current liabilities are $600,000. Therefore, working capital is $232,700 ($832,700 - $600,000).

Refer to the Following Selected Financial Information from McCormik,LLC