Answered: 120, bills payable 35, bills receivable…

120, bills payable 35, bills receivable 45, outstanding expenses 20, creditors 110, debtors 50, the contingency rate is 0.131, then what is net working capital required?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 4TF

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

If the cash is 135, marketable securities 120, bills payable 35, bills receivable 45, outstanding expenses 20, creditors 110, debtors 50, the contingency rate is 0.131, then what is net working capital required?

Select one:

a. 209.24

b. 158.34

c. All the given choices are not correct

d. 152.69

e. 231.85

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