The financial statements for Uptown Service Company include the following items: Compute working capital for 2019.
A)$145,000
B)$96,000
C)$156,000
D)$33,000

Question

The financial statements for Uptown Service Company include the following items:  Compute working capital for 2019.
A)$145,000 
B)$96,000 
C)$156,000 
D)$33,000

Quizplus · Accepted Answer

Working capital = Current assets - Current liabilities
Working capital = (Cash $50,500 + Short-term Investments $27,000 + Net Accounts Receivable $61,000 + Merchandise Inventory $161,000)- (Accounts Payable $127,500 + Salaries Payable $16,000)
Working Capital = $299,500 - 143,500
Working Capital = $156,000

The Financial Statements for Uptown Service Company Include the Following