Using the following balance sheet and income statement data for Castillo Company what is the company's working capital at the period? $$\begin{array} { l r l r }
\text { Current assets } & \$ 41,000 & \text { Net income } & \$ 48,000 \
\text { Current liabilities } & 22,000 & \text { Stockholders' equity } & 75,000 \
\text { Average assets } & 210,000 & \text { Total liabilities } & 125,000 \
\text { Total assets } & 200,000 & &
\end{array}$$
A)$10000
B)$19000
C)$27000
D)$50000

Question

Using the following balance sheet and income statement data for Castillo Company what is the company's working capital at the period? $$\begin{array} { l r l r } 
\text { Current assets } & \$ 41,000 & \text { Net income } & \$ 48,000 \
\text { Current liabilities } & 22,000 & \text { Stockholders' equity } & 75,000 \
\text { Average assets } & 210,000 & \text { Total liabilities } & 125,000 \
\text { Total assets } & 200,000 & &
\end{array}$$
A)$10000
B)$19000
C)$27000
D)$50000

Quizplus · Accepted Answer

Working capital is calculated as current assets minus current liabilities. For Castillo Company, it is $41,000 - $22,000 = $19,000.

Using the Following Balance Sheet and Income Statement Data for Castillo