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Discuss stocks for investment consist of equity securities

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Reference no: EM131813587

Presented below is a partial trial balance for the Tom Company at December 31, 2015.

Account Title Debits            Credits
Cash and cash equivalents $18,626  
Accounts receivable 195,000  
Raw materials inventory 36,000  
Note receivable 120,000  
Interest receivable 8,000  
Interest Payable   $10,000
Stocks for Investment 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) 50,000  
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 uncollectible accounts   24,000
Sales revenue   900,000
Cost of goods sold 500,000  
Salaries expense 48,000  
Retained Earnings   18,626

Additional information:

1. The note receivable, along with any accrued interest, is due on March 1, 2016.

2. The note payable is due in 2019. Interest is payable annually.

3. The stocks for investment 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 24 months.

Required:

Determine the company's working capital (current assets minus current liabilities) at December 31, 2015

Can you help me with this problem?

Reference no: EM131813587

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