Answered

Get expert insights and reliable answers to your questions on IDNLearn.com. Ask your questions and receive comprehensive, trustworthy responses from our dedicated team of experts.

Select the correct answer.

From the following balances for Alpha Inc., calculate the working capital of the company.

\begin{tabular}{|l|r|}
\hline \multicolumn{1}{|c|}{ Items } & Amount (\[tex]$) \\
\hline Accounts payable & 50,000 \\
\hline Inventory & 80,000 \\
\hline Tax payable & 10,000 \\
\hline Cash at bank & 80,000 \\
\hline Prepaid rent & 2,000 \\
\hline
\end{tabular}

A. $[/tex]\[tex]$ 62,000$[/tex]
B. [tex]$\$[/tex] 102,000[tex]$
C. $[/tex]\[tex]$ 60,000$[/tex]
D. [tex]$\$[/tex] 222,000$

Sagot :

GinnyAnsweridn
To calculate the working capital for Alpha Inc., we need to follow these steps:

1. Calculate the current assets of the company.
Current assets include:
- Inventory: [tex]$80,000 - Cash at bank: $[/tex]80,000
- Prepaid rent: [tex]$2,000 Adding these amounts together gives: \[ \text{Current Assets} = 80,000 + 80,000 + 2,000 = 162,000 \] 2. Calculate the current liabilities of the company. Current liabilities include: - Accounts payable: $[/tex]50,000
- Tax payable: [tex]$10,000 Adding these amounts together gives: \[ \text{Current Liabilities} = 50,000 + 10,000 = 60,000 \] 3. Calculate the working capital by subtracting the current liabilities from the current assets: \[ \text{Working Capital} = \text{Current Assets} - \text{Current Liabilities} = 162,000 - 60,000 = 102,000 \] Thus, the working capital of Alpha Inc. is $[/tex]102,000.

The correct answer is:
B. \$ 102,000
Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Find precise solutions at IDNLearn.com. Thank you for trusting us with your queries, and we hope to see you again.