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

question 21

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?
Average inventory $ 33,000
Cost of goods sold 300,000
Purchases 250,000
Average accounts receivable balance 80,000
Average credit sales 320,000
Average accounts payable balance 30,000
Operating expense 400,000
Depreciation claimed as operating expense 50,000
Federal income taxes 25,000
Advances to suppliers 30,000

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Definitions:

Brewery

A place where beer is commercially made.

Beer Barrel

A unit of measurement used for large volumes of beer, commonly equivalent to 31 US gallons in the United States.

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A legal obligation to exercise a reasonable level of care to avoid causing harm to others.

Grizzly Bear

A large species of brown bear inhabiting North America, recognized for its size and significant strength.