E$9-1($Algo$)$ Identifying Current Llabilitles, Computing Working Capltal, and Explalning Workling Capltal LO $9-1,9-4,9\mathrm{.}5$

Cauce Corporation is preparing its yearend balance sheet. The company records show the following selected amounts at the end of the year:

Total assets

Total honcument assets

Liablities:

Notes pabile $(8$x$,$ we in $5$ years$)$

Accounts payable

Incone taxes payable

Lisbilty for witholding taxes

Rent hevenue collected in advance

Donds payable $($due in $15$ years$)$

Wages payable

property taxes payable

Note payable $(10$x$,$ due in $6$ months$)$

Interest payable

Comiton stock

Requlred:

$$610,090$

$366,600$

$20,600$

$52,000$

$13,600$

$3,000$

$7,000$

$118,690$

$7,060$

$3,000$

$14,600$

$110,600$

$1-$a$.$ What is the amount of current liabilities?

$1-$b$.$ Compute working capital.

$2$ Would your computation be different if the company reported $$290,000$ worth of contingent llabilities in the notes to its financlal statements?

Complete this question by entering your answers in the tabs below.

Required $2$

Compute working capital.

Working capital