Question

Privett Company Accounts payable $29,317 Accounts receivable 70,256 Accrued liabilities 6,298 Cash 16,928 Intangible assets 42,493 Inventory 73,062 Long-term investments 110,144 Long-term liabilities 78,554 Marketable securities 36,421 Notes payable (short-term) 21,481 Property, plant, and equipment 602,125 Prepaid expenses 2,512 Based on the data for Privett Company, what is the amount of working capital

Answer 1

Answer:

$142,083

Explanation:

Current asset = Accounts receivable + Cash + Inventory + Marketable securities + Prepaid expenses = 70,256 + 16,928 + 73,062 + 36,421 + 2,512 = $199,179

Current liabilities = Accounts payable + Accrued liabilities + Notes payable (short-term) = 29,317 + 6,298 + 21,481 = $57,096

Working capital = Current assets - Current liabilities = 199,179  - 57,096  = $142,083

Answer 2

Answer:

$142,083

Explanation:

Working capital is the net of the company's current or liquid assets with the company's current liabilities or obligations. Current assets includes cash, accounts receivables, inventory etc while accounts payable, short term note payable etc are examples of short term liabilities.

Based on the data for Privett Company, the amount of working capital

= $70,256 + $16,928 + $73,062 + $2,512 + $36,421 - $21,481 - $29,317 - $6,298

= $142,083