Working capital from balance sheet. I am getting 271,000. The "check your answer" function is telling me this is incorrect. I am subtracting "allowance for uncollectable accounts" from A/R and only using current assets/liabilities. Not sure what is going on here. Previous posting of this similar question have been cross referenced already. See Below.
| Presented below is a partial trial balance for the Messenger Corporation at December 31, 2016. |
| Account Title |
Debits |
Credits |
| Cash and cash equivalents |
35,000 |
| Accounts receivable |
205,000 |
| Raw materials inventory |
41,000 |
| Note receivable |
145,000 |
| Interest receivable |
7,000 |
| Interest payable |
12,000 |
| Marketable securities |
44,000 |
| Land |
125,000 |
| Buildings |
1,550,000 |
| Accumulated depreciation-buildings |
765,000 |
| Work in process inventory |
43,000 |
| Finished goods inventory |
94,000 |
| Equipment |
425,000 |
| Accumulated depreciation-equipment |
255,000 |
| Franchise (net of amortization) |
1,300,000 |
| Prepaid insurance (for the next year) |
65,000 |
| Deferred revenue |
51,000 |
| Accounts payable |
290,000 |
| Note payable |
550,000 |
| Salaries payable |
11,000 |
| Cash restricted for payment of note payable |
125,000 |
| Allowance for uncollectible accounts |
29,000 |
| Sales revenue |
1,000,000 |
| Cost of goods sold |
525,000 |
| Salaries expense |
53,000 |
Additional information:
1. The note receivable, along with any accrued interest, is due on November 1, 2017.
2. The note payable is due in 2021. Interest is payable annually.
3. The marketable securities consist of equity securities of other corporations. Management does not intend to sell any of the securities in the next year.
4. Deferred revenue will be earned equally over the next 18 months.
Required:
Determine the company's working capital (current assets minus current liabilities) at December 31, 2016. (Do not round your intermediate calculations.)