Constructing Balance Sheets and Computing Working Capital

The following balance sheet data are reported for Beaver, Inc., at May 31, 2015.

Accounts receivable............... $18,300 Accounts payable................. $ 5,200

Notes payable ................... 20,000. cash...........................................12,200

Equipment ...................... 55,000 commonstock...............................42,500

Supplies . . . . . . . . . . . . 16,400 retained earnings.............................?

Assume that on June 1, 2015, only the following two transactions occurred:

1)Purchased additional equipment costing $15,000, giving $2,000 cash and a $13,000 note payable.

2)Declared and paid a $7,000 cash dividend.June 1

Prepare its balance sheet at May 31, 2015.

Prepare its balance sheet at June 1, 2015.

Calculate its net working capital at June 1, 2015. (Assume that Notes Payable are noncurrent.)