Use the information below for Harding Company to answer the questions that follow. Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the data for Harding Company, what is the amount of working capital? Group of answer choices $203,000 $168,000 $238,000 $128,000
Use the information below for Harding Company to answer the questions that follow. Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the data for Harding Company, what is the amount of working capital? Group of answer choices $203,000 $168,000 $238,000 $128,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the information below for Harding Company to answer the questions that follow.
|
Harding Company |
|
| Accounts payable |
$ 40,000 |
| Accounts receivable |
65,000 |
| Accrued liabilities |
7,000 |
| Cash |
30,000 |
| Intangible assets |
40,000 |
| Inventory |
72,000 |
| Long-term investments |
110,000 |
| Long-term liabilities |
75,000 |
| Marketable securities |
36,000 |
| Notes payable (short-term) |
30,000 |
| Property, plant, and equipment |
625,000 |
| Prepaid expenses |
2,000 |
Based on the data for Harding Company, what is the amount of working capital ?
Group of answer choices
$203,000
$168,000
$238,000
$128,000
Expert Solution
Introduction
For an every business entity it is important to manage working capital effectively so that they can be able to operate their day to day business operations smoothly and effectively in other words working capital is the capital which is essential to pay short term debt obligations like payments to suppliers, payable and short term notes payable.
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