Given the Following Information About Jones Corporation, What Are Jones's

question 44

Essay

Given the following information about Jones Corporation, what are Jones's working capital needs using the Bardahl formula, assuming that federal income taxes are not an operating expense?
$\begin{array}{ll}\text { Average inventory } & \$ 33,000 \\\text { Cost of goods sold } & 300,000 \\\text { Purchases } & 250,000 \\\text { Average accounts receivable balance } & 80,000 \\\text { Average credit sales } & 320,000 \\\text { Average accounts payable balance } & 30,000 \\\text { Operating expense } & 400,000 \\\text { Depreciation claimed as operating expense } & 50,000 \\\text { Federal income taxes } & 25,000 \\\text { Advances to suppliers } & 30,000\end{array}$

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