Question:
Presented below is a partial trial balance for the Kansas Instruments Corporation at December 31, 2013.
Additional Information:
1. The note receivable, along with any accrued interest, is due on November 22, 2014.
2. The note payable is due in 2017. Interest is payable annually.
3. The marketable securities consist of treasury bills, all of which mature in the next year.
4. Unearned revenue will be earned equally over the next two years.
Required:
Determine the company’s working capital (current assets minus current liabilities) at December 31, 2013.
Answer:
Current assets:
Cash $20,000
Presented below is a partial trial balance for the Kansas Instruments Corporation at December 31, 2013.
Additional Information:
1. The note receivable, along with any accrued interest, is due on November 22, 2014.
2. The note payable is due in 2017. Interest is payable annually.
3. The marketable securities consist of treasury bills, all of which mature in the next year.
4. Unearned revenue will be earned equally over the next two years.
Required:
Determine the company’s working capital (current assets minus current liabilities) at December 31, 2013.
Answer:
Current assets:
Cash $20,000
