Answer:
Sheffield Corp.
The amount of working capital
= Current Assets minus Current Liabilities
= $596,300 - $229,000
= $367,300
Explanation:
a) Data and Calculations:
Cash               $200,000
Accounts receivable    154,000
Inventory             152,000
Prepaid insurance      90,300
Total current assets                     $596,300
Stock investments (long-term) Â Â Â Â 266,000
Land                          299,000
Buildings           $305,000
Less: Accumulated
depreciation          (55000)   250,000
Goodwill                       216,000 $1,031,000
Total assets                           $1,627,300
Accounts payable       $202,000
Salaries and wages payable 27,000
Current Liabilities       $229,000
Mortgage payable        236,000
Total liabilities                         $465,000
Common stock            $420,300
Retained earnings          742,000
Total stockholders' equity               $1,162,300
Total liabilities and stockholders' equity   $1,627,300
The difference between Sheffield Corporation's current assets and the current liabilities is known as the working capital. Â It is the excess between these two parameters.
