accumulated depreciation - buildings 286,000 637,000\ninventory 334,000 560,000\ncommon stock…

accumulated depreciation - buildings 286,000 637,000\ninventory 334,000 560,000\ncommon stock 147,000\nequipment 137,000\naccumulated depreciation - equipment 77,000\npatent (net) 53,000\nprepaid rent (for the next two years) 197,000\ndeferred revenue 578,000\naccounts payable\nnotes payable 97,000\nrestricted cash (for payment of notes payable) 30,000\nallowance for uncollectible accounts 1,140,000\nsales revenue 467,000\ncost of goods sold 45,000\nrent expense\ntotals $3,457,000 $3,457,000\nadditional information:\n1. the notes receivable, along with any interest receivable, are due on november 22, 2028.\n2. the notes payable are due in 2031. interest is payable annually.\n3. the investment in debt securities consists of treasury bills, all of which mature next year.\n4. deferred revenue will be recognized as revenue equally over the next two years.\nrequired:\ndetermine the companys working capital (current assets minus current liabilities) on december 31, 2027.\nnote: amounts to be deducted should be indicated by a minus sign.\ncurrent assets\n\n\n\n\n\ntotal current assets\ncurrent liabilities\n\n\n\n\n\ntotal current liabilities\nworking capital

accumulated depreciation - buildings 286,000 637,000\ninventory 334,000 560,000\ncommon stock 147,000\nequipment 137,000\naccumulated depreciation - equipment 77,000\npatent (net) 53,000\nprepaid rent (for the next two years) 197,000\ndeferred revenue 578,000\naccounts payable\nnotes payable 97,000\nrestricted cash (for payment of notes payable) 30,000\nallowance for uncollectible accounts 1,140,000\nsales revenue 467,000\ncost of goods sold 45,000\nrent expense\ntotals $3,457,000 $3,457,000\nadditional information:\n1. the notes receivable, along with any interest receivable, are due on november 22, 2028.\n2. the notes payable are due in 2031. interest is payable annually.\n3. the investment in debt securities consists of treasury bills, all of which mature next year.\n4. deferred revenue will be recognized as revenue equally over the next two years.\nrequired:\ndetermine the companys working capital (current assets minus current liabilities) on december 31, 2027.\nnote: amounts to be deducted should be indicated by a minus sign.\ncurrent assets\n\n\n\n\n\ntotal current assets\ncurrent liabilities\n\n\n\n\n\ntotal current liabilities\nworking capital

Answer

Explanation:

Step1: Identify current assets

Inventory ($334,000), Pre - paid rent (half is current as it's for two years, so $\frac{197,000}{2}=98,500$), Restricted cash ($30,000 as it's for payment of current - related notes payable), Allowance for uncollectible accounts is a contra - asset but we consider accounts receivable amount which is not given separately here, so we assume relevant amounts are adjusted within given data, and we'll sum up known current assets components. [334,000 + 98,500+30,000=462,500]

Step2: Identify current liabilities

Accounts payable ($97,000), Deferred revenue (half is current as it will be recognized over two years, so $\frac{570,000}{2}=285,000$) [97,000 + 285,000=382,000]

Step3: Calculate working capital

Working capital = Current assets - Current liabilities [462,500-382,000 = 80,500]

Answer:

$80,500$