Mara Company provided the following data on December 31, 2020:• Cash in general checking account• Sinking fund to be used to retire bonds in 2023• Cash held to pay value added taxes• Notes receivable due on February 2022• Accounts receivable• Inventory• Prepaid insurance• Vacant land held as investment• Equipment classified as held for saleP500,0001,200,000300,0002,200,0002,100,0001,500,000300,0005,000,000200,000Accounts payable1,400,000• Note payable due on July 2021• Note payable due on January 2022• Bond payable which matures on 2023• Salaries payable• Value added taxes payable800,000300,0004,600,000400,000300,000How much is the total working capital(Current asset less current liability) on December31, 2020?A. 4,900,000B. 2,900,000C. 2,000,000D. 2,500,000

Answer: Total working capital = Current asset- Current liability

Mara Company provided the following data on December 31, 2020: • Cash in general checking account • Sinking fund to be used to retire bonds in 2023 • Cash held to pay value added taxes • Notes receivable due on February 2022 • Accounts receivable • Inventory P 500,000 1,200,000 300,000 2,200,000 2,100,000 1,500,000 Prepaid insurance 300,000 • Vacant land held as investment 5,000,000

Mara Company provided the following data on December 31, 2020: • Cash in general checking account • Sinking fund to be used to retire bonds in 2023 • Cash held to pay value added taxes • Notes receivable due on February 2022 • Accounts receivable • Inventory P 500,000 1,200,000 300,000 2,200,000 2,100,000 1,500,000 Prepaid insurance 300,000 • Vacant land held as investment 5,000,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 43E: Determining Cash Flows from Financing Activities Solomon Construction Company reported the following...

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Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000
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