Based on the following data, what is the amount of working capital? $\begin{array}{ll}
\$ 32,000 & \text { Accounts payable } \
64,000 & \text { Accounts receivable } \
7,000 & \text { Accrued liabilities } \
20,000 & \text { Cash } \
40,000 & \text { Intangible assets } \
72,000 & \text { Inventory } \
100,000 & \text { Long-term investments } \
75,000 & \text { Long-term liabilities } \
35,000 & \text { Marketable securities } \
20,000 & \text { Notes payable (short-term) } \
625,000 & \text { Property, plant, and equipment } \
2,000 & \text { Prepaid expenses }
\end{array}$

A) $190,000
B) $134,000
C) $118,000
D) $62,000

Question

Based on the following data, what is the amount of working capital? $\begin{array}{ll}
\$ 32,000 & \text { Accounts payable } \
64,000 & \text { Accounts receivable } \
7,000 & \text { Accrued liabilities } \
20,000 & \text { Cash } \
40,000 & \text { Intangible assets } \
72,000 & \text { Inventory } \
100,000 & \text { Long-term investments } \
75,000 & \text { Long-term liabilities } \
35,000 & \text { Marketable securities } \
20,000 & \text { Notes payable (short-term) } \
625,000 & \text { Property, plant, and equipment } \
2,000 & \text { Prepaid expenses }
\end{array}$

A) $190,000
B) $134,000
C) $118,000
D) $62,000

Quizplus · Accepted Answer

Working capital is calculated as current assets minus current liabilities. Current assets include cash, accounts receivable, inventory, marketable securities, and prepaid expenses, totaling $193,000. Current liabilities include accounts payable, accrued liabilities, and notes payable (short-term), totaling $59,000. Thus, working capital is $193,000 - $59,000 = $134,000.

Based on the Following Data, What Is the Amount of Working