Determine Working Capital from a partial balance sheet
Presented below is a partial trial balance for the Kansas Instruments Corporation at December 31, 2011.
Account Title Debits Credits
Cash 21,000
Accounts receivable 134,000
Raw materials 31,000
Note receivable 107,000
Interest receivable 4,100
Interest payable 4,700
Marketable securities 35,000
Land 46,000
Buildings 1,270,000
Accumulated depreciation—buildings 580,000
Work in process 46,500
Finished goods 93,000
Equipment 220,000
Accumulated depreciation—equipment 124,000
Patent (net of amortization) 129,000
Prepaid rent (for the next two years) 66,000
Unearned revenue 34,000
Accounts payable 170,000
Note payable 340,000
Cash restricted for payment of note payable 73,000
Allowance for uncollectible accounts 12,200
Sales revenue 880,000
Cost of goods sold 540,000
Rent expense 19,000
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Additional information:
1. The note receivable, along with any accrued interest, is due on November 22, 2012.
2. The note payable is due in 2015. 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 at December 31, 2011.