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Question & Answer: Use the following data to determine the total amount of working capital. $393100 $183100 $363100 $133100…..

Use the following data to determine the total amount of working capital. Cheyenne Corp. Balance Sheet December 31, 2017 Cash Accounts receivable Inventory Prepaid insurance Stock investments (long-term) Land Buildings Less: Accumulated depreciation Trademarks Total assets $205000 27000 236000 $468000 $200000 Accounts payable Salaries and wages payable Mortgage payable 147000 162000 86100 Total liabilities 261000 261000 $391600 736000 $1127600 $1595600 Common stock $320000 (60500)259500 Retained earnings Total stockholders equity Total liabilities and stockholders equity 219000 $1595600 $393100 $183100 O$363100o o $133100

Use the following data to determine the total amount of working capital. $393100 $183100 $363100 $133100

Expert Answer

 

Total current assets=(Cash+_AR+Inventory+Prepaid insurance_)

=(200,000+147000+162000+86100)=$595100

Total current liabilities=(AP+Salaries and wages payable)

=(205000+27000)=$232000

Hence Working capital=Current assets-Current liabilities

=$595100-$232000

=$363100(C).

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