Asked by Ariel Kirkpatrick on May 11, 2024

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Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total plant and equipment (net) of $958,000, total assets of $1,573,000, and total liabilities of $390,000. The company's working capital is:

A) $615,000
B) $1,183,000
C) $385,000
D) $958,000

Stockholders' Equity

Represents the equity stake currently held by all shareholders of a company, calculated as the total assets minus total liabilities.

Working Capital

The distinction between an organization's immediate assets and liabilities, showing its short-term fiscal well-being and effectiveness in operations.

Plant and Equipment

Long-term tangible assets used in the operation of a business, not intended for sale.

  • Determine working capital and recognize its relevance.
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Daishon MurrellMay 12, 2024
Final Answer :
C
Explanation :
Working capital is calculated by subtracting current liabilities from current assets. Therefore, Calin Corporation's working capital is $385,000 ($615,000 - $230,000). None of the other given values are relevant to calculating working capital.