Shirlen Company Has the Following Partial List of Account Balances

question 8

Essay

Shirlen Company has the following partial list of account balances at year end: $$\begin{array} { | l | r | } \hline \text { Trade payables } & \$ 500 \\\hline \text { Trade receivables } & 1,600 \\\hline \text { Bonds payable (due in 5 years) } & 80,000 \\\hline \text { Cash } & 2,000 \\\hline \text { Equipment (net) } & 5,000 \\\hline \text { Land } & 9,900 \\\hline \text { Notes payable (due in 6 months) } & 800 \\\hline \text { Salaries payable } & 700 \\\hline \text { Cost of Goods Sold } & 5,000 \\\hline\end{array}$$ Required:
A. Determine the amount of working capital.
B. Assume that cash is used to pay the balance due on trade payables. Compute the new amount of working capital.
C. Compute the trade payables turnover ratio .

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Definitions:

Government Mandates

Requirements set by governments that organizations must follow, often related to regulations, safety standards or operational procedures.

Toxic Emissions

Harmful pollutants released into the environment, particularly through processes like manufacturing, automobile exhaust, and energy production.

Manufacturing Facilities

Physical locations equipped with machinery and tools where goods are produced on a large scale.

Grocery Store

A retail establishment primarily engaged in offering a wide variety of food products, along with household goods.