Use This Balance Sheet and Income Statement for the First

Multiple Choice

Use this balance sheet and income statement for the first year of operations for Layton Novelties to answer the following question. Use ending balances whenever average balances are required for computing ratios. The total amount of working capital for Layton Novelties is

A) $8,000.
B) $28,000.
C) $12,000.
D) $4,000.