1. Based on the following data, what is the amount ofworking capital?
Accounts payable....................$32,000
Accounts receivable....................64,000
Accrued liabilities....................7,000
Cash.........................................20,000
Intangible assets............................40,000
Inventory...............................................72,000
Long-term investments...............................100,000
Long-term liabilities.....................................75,000
Marketable securities.................................35,000
Notes payable (short-term)........................20,000
Property, plant, and equipment.................625,000
Prepaid expenses.........................................2,000
WHAT IS WORKING CAPITAL?

a. $162,000

b. $134,000

c. $193,000

d. $62,000

2. Use the following data to determine the total dollaramount of assets to be classified as current assets.
Cash..............................................$60,000
Prepaid insurance..........................40,000
Accounts receivable......................50,000
Inventory.........................................70,000
Land held for investment................80,000
Land................................................95,000
Buildings..................$100,00
Less Accumulated
Depreciation (30,000) 70,000
Trademarks 70,000
Total Assets $535,000
WHAT IS CURRENT ASSETS?

a. $220,000

b. $150,000

c. $300,000

d. $180,000

3. Cash.......................................$60,000
Prepaid insurance....................40,000
Accounts Receivable...............50,000
Inventory...................................70,000
Land held for investment..........80,000
Land..........................................95,000
Buildings..........$100,000
Less Accumulated
Depreciation.........(30,000) ..........70,000
Trademarks.............................................70,000
Total Assets.........................................$535,000

Accounts Payable............................$65,000
Salaries Payable.............................. 10,000
Mortgage Payable............................ 90,000
Total Liabilities.............

WORKING CAPITAL IS?

a. $155,000

b. $145,000

c. $60,000

d. $150,000

4. Cash.................................$50,000
Prepaid insurance............. 30,000
Accounts receivable..........40,000
Inventory............................70,000
Land held for investment...80,000
Land...................................75,000
Buildings.....$110,000
Less Accumulated
Depreciation.....(20,000)............90,000
Trademarks.........................................70,000
Total Assets.....................................$525,000


Accounts Payable..............................$55,000
Salaries payable..................................10,000
Mortgage payable................................90,000
Total Liabilities..................................$155,000
CURRENT RATIO IS?

a. 1.85: 1

b. 2.92: 1

c. 3.45: 1

d. 1.38: 1