Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The working capital at the end of Year 2 is:

A) $270
B) $500
C) $770
D) $740

Question

Data from Dunshee Corporation's most recent balance sheet appear below:

Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The working capital at the end of Year 2 is:

A) $270
B) $500
C) $770
D) $740

Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  Working capital = Current assets - Current liabilitiesFrom the balance sheet, we can see that:Current assets = $1,350Current liabilities = $1,080Therefore, working capital = $1,350 - $1,080 = $270The sales and cost of goods sold information is not relevant to calculating the working capital.

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The working capital at the end of Year 2 is:

A) $270
B) $500
C) $770
D) $740

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Learning Objectives

Related questions

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The working capital at the end of Year 2 is:A) $270B) $500C) $770D) $740

Definitions

Learning Objectives

Learning Objectives

Related questions

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The working capital at the end of Year 2 is:

A) $270
B) $500
C) $770
D) $740