QUESTION 4 / 11
According to the trial balance, what is the working capital?
| Trial Balance | |
| Cash | $ 10,000 |
| Accounts Receivable (AR) | $ 2,000 |
| Inventory | $ 3,000 |
| Accounts Payable (AP) | $ 2,000 |
| Accrued Expenses (AE) | $ 3,000 |
| Revenue | $ 15,000 |
a.) (Cash + AR + Inventory) - AE
b.) Revenue - AE
c.) Cash + AR + Revenue
d.) Cash + AR + Inventory
e.) (Cash + AR + Inventory) - (AE + AP)
Answer: e.) (Cash + AR + Inventory) - (AE + AP)
| Working capital | $ 10,000.00 |
Working
| Cash | $ 10,000.00 | |
| Accounts receivable | $ 2,000.00 | |
| Inventory | $ 3,000.00 | |
| A | Total current assets | $ 15,000.00 |
| Accounts payable | $ 2,000.00 | |
| Accrued expenses | $ 3,000.00 | |
| B | Total curret liabilities | $ 5,000.00 |
| (A-B) | Working capital | $ 10,000.00 |