The 2020 and 2021 partial balance sheets for Ottoman Industries are shown below. Calculate Ottoman's working capital for 2021.
A)$26,000
B)$36,000
C)1.65
D)1.53

Question

The 2020 and 2021 partial balance sheets for Ottoman Industries are shown below.  Calculate Ottoman's working capital for 2021.
A)$26,000 
B)$36,000 
C)1.65 
D)1.53

Quizplus · Accepted Answer

Working capital is calculated as current assets minus current liabilities. 
For 2021, 
Current assets = $46,000 
Current liabilities = $20,000 
Working capital = $46,000 - $20,000 = $26,000. 
Therefore, the answer is A, $26,000.

The 2020 and 2021 Partial Balance Sheets for Ottoman Industries