Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31,...
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Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable Raw materials Notes receivable Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Debits $ 39,000 Credits 168,000 43,000 119,000 22,000 $ 24,000 51,000 69,000 1,680,000 639,000 61,000 108,000 338,000 Accumulated depreciation-equipment 149,000 Patent (net) 139,000 Prepaid rent (for the next two years) 79,000 Deferred revenue 55,000 Accounts payable 199,000 Notes payable 590,000 Restricted cash (for payment of notes payable) 99,000 Allowance for uncollectible accounts 32,000 Sales revenue 1,180,000 Cost of goods sold 469,000 Rent expense 47,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign. Current assets: Cash Accounts receivable Raw materials 39,000 168,000 43,000 Notes receivable 119,000 Interest receivable 22,000 Investment in debt securities 51,000 Work in process Finished goods Prepaid rent 108,000 39,500 Total current assets Current liabilities: Deferred revenue Accounts payable Interest payable Total current liabilities Working capital 27,500 589,500 27,500 Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable Raw materials Notes receivable Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Debits $ 39,000 Credits 168,000 43,000 119,000 22,000 $ 24,000 51,000 69,000 1,680,000 639,000 61,000 108,000 338,000 Accumulated depreciation-equipment 149,000 Patent (net) 139,000 Prepaid rent (for the next two years) 79,000 Deferred revenue 55,000 Accounts payable 199,000 Notes payable 590,000 Restricted cash (for payment of notes payable) 99,000 Allowance for uncollectible accounts 32,000 Sales revenue 1,180,000 Cost of goods sold 469,000 Rent expense 47,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign. Current assets: Cash Accounts receivable Raw materials 39,000 168,000 43,000 Notes receivable 119,000 Interest receivable 22,000 Investment in debt securities 51,000 Work in process Finished goods Prepaid rent 108,000 39,500 Total current assets Current liabilities: Deferred revenue Accounts payable Interest payable Total current liabilities Working capital 27,500 589,500 27,500
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