Answer:
Sheffield Corp.
The amount of working capital
= Current Assets minus Current Liabilities
= $596,300 - $229,000
= $367,300
Explanation:
a) Data and Calculations:
Cash $200,000
Accounts receivable 154,000
Inventory 152,000
Prepaid insurance 90,300
Total current assets $596,300
Stock investments (long-term) 266,000
Land 299,000
Buildings $305,000
Less: Accumulated
depreciation (55000) 250,000
Goodwill 216,000 $1,031,000
Total assets $1,627,300
Accounts payable $202,000
Salaries and wages payable <u>27,000
</u>
Current Liabilities $229,000
Mortgage payable 236,000
Total liabilities $465,000
Common stock $420,300
Retained earnings 742,000
Total stockholders' equity $1,162,300
Total liabilities and stockholders' equity $1,627,300
The difference between Sheffield Corporation's current assets and the current liabilities is known as the working capital. It is the excess between these two parameters.
