Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable Raw materials Notes receivable Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net) Prepaid rent (for the next two years) Deferred revenue Accounts payable Notes payable Restricted cash (for payment of notes payable) Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense Debits $ 40,000 170,000 44,000 120,000 23,000 52,000 70,000 1,700,000 62,000 109,000 340,000 140,000 80,000 100,000 470,000 48,000 Credits $ 25,000 640,000 150,000 56,000 200,000 600,000 33,000 1,200,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required:
Determine the company's working capital (current assets minus current liabilities) at December 31, 2024.
Note: Amounts to be deducted should be indicated by a minus sign.
Current assets:
Cash
Accounts receivable
Raw materials
Notes receivable
Interest receivable
Investment in debt securities
Work in process
Finished goods
Prepaid rent
Total current assets
Current liabilities:
Accounts payable
Interest payable
Deferred revenue
Total current liabilities
Working capital
$
40,000
170,000
44,000
120,000
23,000
52,000
62,000
109,000
40,000
200,000
25,000
28,000
660,000
253,000
$ 374,000
Transcribed Image Text:Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign. Current assets: Cash Accounts receivable Raw materials Notes receivable Interest receivable Investment in debt securities Work in process Finished goods Prepaid rent Total current assets Current liabilities: Accounts payable Interest payable Deferred revenue Total current liabilities Working capital $ 40,000 170,000 44,000 120,000 23,000 52,000 62,000 109,000 40,000 200,000 25,000 28,000 660,000 253,000 $ 374,000
Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024.
Account Title
Cash
Accounts receivable
Raw materials
Notes receivable
Interest receivable
Interest payable
Investment in debt securities
Land
Buildings
Accumulated depreciation-buildings
Work in process
Finished goods
Equipment
Accumulated depreciation-equipment
Patent (net)
Prepaid rent (for the next two years)
Deferred revenue
Accounts payable
Notes payable
Restricted cash (for payment of notes payable).
Allowance for uncollectible accounts
Sales revenue
Cost of goods sold
Rent expense
Debits
$ 40,000
170,000
44,000
120,000
23,000
52,000
70,000
1,700,000
62,000
109,000
340,000
140,000
80,000
100,000
470,000
48,000
Credits
$ 25,000
640,000
150,000
56,000
200,000
600,000
33,000
1,200,000
Additional Information:
1. The notes receivable, along with any interest receivable, are due on November 22, 2025.
2. The notes payable are due in 2028. Interest is payable annually.
3. The investment in debt securities consist of treasury bills, all of which mature next year.
4. Deferred revenue will be recognized as revenue equally over the next two years.
Required:
Determine the company's working capital (current assets minus current liabilities) at December 31, 2024.
Note: Amounts to be deducted should be indicated by a minus sign.
Transcribed Image Text:Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable Raw materials Notes receivable Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net) Prepaid rent (for the next two years) Deferred revenue Accounts payable Notes payable Restricted cash (for payment of notes payable). Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense Debits $ 40,000 170,000 44,000 120,000 23,000 52,000 70,000 1,700,000 62,000 109,000 340,000 140,000 80,000 100,000 470,000 48,000 Credits $ 25,000 640,000 150,000 56,000 200,000 600,000 33,000 1,200,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
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