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The financial statements of Katherine Company include the following​ items: 2025 2024 Cash $48,700 $54,000 Short−term Investments ​28,000 13,000 Net Accounts Receivable ​102,000 95,000 Merchandise Inventory ​166,000 140,000 Total Assets ​527,000 550,000 Total Current Liabilities ​273,000 291,000 Long−term Notes Payable ​64,000 70,000 What is working capital for​ 2024? A. $11,000 B. $178,700 C. $162,000 D.

Sagot :

Parrain

Answer: $11,000

Explanation:

Working capital is calculated as the difference between current assets and current liabilities.

For 2024 therefore, the working capital is:

= (Cash + Net accounts receivable + Short−term Investments ​+ Merchandise Inventory) - Current liabilities

= (54,000 + 95,000 + 13,000 + 140,000) - 291,000

= $11,000

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