Determine the companys working capital

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Assignment

Presented below is a partial trial balance for the Messenger Corporation at December 31, 2013.

Cash and Cash equivalents

30,000


Accounts receivable

195,000


Raw materials inventory

36,000


Note Receivable

120,000


Interest Receivable

4,000


Interest Payable


7,000

Marketable securities

48,000


Land

100,000


Buildings

1,500,000


Accumulated Depreciation- buildings


740,000

Work in process inventory

38,000


Finished goods inventory

98,000


Equipment

400,000


Accumulated Depreciation - equipment


230,000

Franchise (net of amortization)

120,000


Prepaid Insurance (for the next year)

60,000


Unearned Revenue


48,000

Accounts Payable


240,000

Note Payable


500,000

Salaries Payable


6,000

Cash Restricted for payment of note payable

100,000


Allowance for uncollected accounts


24,000

Sales Revenue


900,000

Cost of Goods Sold

500,000


Salaries Expense

48,000


Additionalinformation:

1. The note receivable, along with any accrued interest, is due on November 1, 2014.

2. The note payable is due in 2018. Interest is payable annually.

3. The marketable securities consist of equity securities of other corporations. Management does not intend to sell any of the securities in the next year.

4. Unearned revenue will be earned equally over the next 18 months.

Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2013.

Reference no: EM131809779

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