$\begin{array}{ll}
\$ 30,000 & \text { Accounts payable } \
65,000&\text { Accounts receivable } \
7,000 & \text { Acculud liabilities } \
20,000 & \text { Cash } \
40,000 & \text { Intangible assets } \
72,000 & \text { Inventory } \
100,000 & \text { Long-term investments } \
75,000 & \text { Long-term liabilities } \
36,000 & \text { Marketable securities } \
20,000 & \text { Notes payable (short-term) } \
625,000 & \text { Property, plant, and equipment } \
2,000 & \text { Prepaid expenses }
\end{array}$ Based on the above data, what is the amount of working capital?
A) $238,000
B) $138,000
C) $178,000
D) $64,000

Question

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 $195,000. Current liabilities include accounts payable, accrued liabilities, and notes payable, totaling $57,000. Therefore, working capital is $195,000 - $57,000 = $138,000.

Based on the Above Data, What Is the Amount of Accounts