Given below are the comparative balance sheets and an income statement for the excellent corporation.calculate the working capital at year end. Excellent CorporationIncome Statement for the yearended 2018Dec. 31Jan. 1Cash$ 34,000Accounts receivable 94,000$ 34,000$524,000SalesInventoryEquipment (net)(328,000)$ 196,00078,000Cost of goods sold68,000Gross profit on salesOperating expensesOperating income74,000(118,700)$77,300114,000132,000Total Assets$310,000.00 $318,000.00Accounts payable(28,750)Interest expense54,00060,000and income taxesDividends payable 20,000$48,55012,000Net incomeLong-term notepayable32,00032,000Capital stock, $10par (14,000 shs)Retained earnings140,000140,00064,00074,000Total Liabilities+$310,000$318,000Equity(Show calculations below or on back

Current assets are those assets which are easily convertible in to cash or used with in a period of…

Answered: Given below are the comparative balance…

Given below are the comparative balance sheets and an income statement for the excellent corporation. calculate the working capital at year end.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Given below are the comparative balance sheets and an income statement for the excellent corporation. calculate the working capital at year end.

Excellent Corporation
Income Statement for the year
ended 2018
Dec. 31
Jan. 1
Cash
$ 34,000
Accounts receivable 94,000
$ 34,000
$524,000
Sales
Inventory
Equipment (net)
(328,000)
$ 196,000
78,000
Cost of goods sold
68,000
Gross profit on sales
Operating expenses
Operating income
74,000
(118,700)
$77,300
114,000
132,000
Total Assets
$310,000.00 $318,000.00
Accounts payable
(28,750)
Interest expense
54,000
60,000
and income taxes
Dividends payable 20,000
$48,550
12,000
Net income
Long-term note
payable
32,000
32,000
Capital stock, $10
par (14,000 shs)
Retained earnings
140,000
140,000
64,000
74,000
Total Liabilities+
$310,000
$318,000
Equity
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