Answer:
Current (quick) assets: $195,000
Working capital: $138,000
Explanation:
We can find the correct answer by laying out the information appropriately:
Current Assets:
Accounts Receivable: $65,000
Cash: $20,000
Inventory: $72,000
Marketable securities: $36,000
Prepaid expenses: $2,000
Total: $195,000
Current Liabilities:
Accounts payable: $30,000
Accrued liabilities: $7,000
Notes payable (short-term): $20,000
Total: $57,000
Working capital = current assets - current liabilities
Working capital = $195,000 - $57,000
= $138,000
The following accounts mentioned in the question are non-current assets: intangible assets, long-term investments, and property, plant and equipment.
And long-term liabilities, as the name implies, is classified as a non-current liability.
