E9-1 (Algo) Identifying Current Liabilities, Computing Working Capital, and Explaining Working Capital LO 9-1, 9-4, 9-5

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

Total assets	$	580,000
Total noncurrent assets		332,000
Liabilities:
Notes payable (8%, due in 5 years)		18,000
Accounts payable		52,000
Income taxes payable		12,000
Liability for withholding taxes		2,000
Rent revenue collected in advance		8,000
Bonds payable (due in 15 years)		110,000
Wages payable		8,000
Property taxes payable		4,000
Note payable (10%, due in 6 months)		13,000
Interest payable		700
Common stock		250,000

Required:

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

1-b. Compute working capital.

2. Would your computation be different if the company reported $330,000 worth of contingent liabilities in the notes to its financial statements?

multiple choice

• Yes

• No