Use the Following Data to Determine the Total Amount of Working

question 148

Multiple Choice

Use the following data to determine the total amount of working capital. Eddy Auto Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 126,000 & \text { Accounts payable } & \$ 165,000 \\\text { Accounts receivable } & 120,000 & \text { Salaries and wages payable } & 30,000 \\\text { Inventory } & 210,000 & \text { Mortgage payable } & 270,000\\\text { Prepaid insurance } & 90,000 & \text { Total liabilities } &\$465,000\\\text { Stock investments } & 255,000 & \\\text { Land } & 285,000 &\\\text { Buildings }\quad\$339,000&&\text { Common stock } & \$ 360,000 \\\text { Less: Accumulated }&&\text { Retained earnings } & 750,000\\\text { depreciation }\quad(60,000) &279,000&\text { Total stockholders' equity }&\$1,110,000\\\text { Trademarks }&210,000&\text { Total liabilities and }\\\text { Total assets }&\$1,050,000&\text { stockholders' equity }&\$1,575,000\end{array}$

• A)$606,000
• B)$351,000
• C)$381,000
• D)$261,000

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Definitions:

Joint And Several

A legal term referring to the shared and individual responsibility of two or more parties to fulfill the entirety of an obligation or debt.

Partnership Law

Legal regulations governing the formation, operation, and dissolution of a partnership, which is a business entity owned by two or more people.

Liability

The state of being legally responsible for something, such as a debt or obligation.

Revised Uniform Partnership Act

An updated set of laws that provide a legal framework for the formation, operation, and dissolution of partnerships in the United States.