A Corporation Reports the Following Year-End Balance Sheet Data

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's working capital equals: $\begin{array}{lrcc}\text { Cash } & \$ 400,000 & \text { Current liabilities } & \$ 75,000 \\\text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\text { Inventory } & 60,000 & \text { Common stock } & 100,000\end{array}$

$\begin{array}{cclc}\text { Equipment } & 145,000 & \text { Retained earnings } & 90,000 \\\text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000\end{array}$

A) $75,000
B) $155,000
C) $300,000
D) $80,000
E) $190,000