Answer:
$10,500
Explanation:
Calculation for Stanford Company's Working Capital
Using this formula
Working capital =Current Assets- Current Liabilities
Where,
Current Assets = Cash + Accounts Receivable + Inventory + Prepaid Insurance
Current Assets = ($5,000 + $15,000 + $40,000 + $3,000) = $63,000
Current Liabilities = Accounts Payable + Notes Payable in 5 Months + Salary Payable
Current Liabilities = ($15,000 + $12,500 + $25,000) = $52,500
Let plug in the formula
Working capital =$63,000-$52,500
Working capital =$10,500
Therefore the Working Capital for Stanford Company will be $10,500
