Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024.Account TitleDebitsCreditsCash$ 38,000 Accounts receivable166,000 Raw materials42,000 Notes receivable118,000 Interest receivable21,000 Interest payable $ 23,000Investment in debt securities50,000 Land68,000 Buildings1,660,000 Accumulated depreciation—buildings 638,000Work in process60,000 Finished goods107,000 Equipment336,000 Accumulated depreciation—equipment 148,000Patent (net)138,000 Prepaid rent (for the next two years)78,000 Deferred revenue 54,000Accounts payable 198,000Notes payable 580,000Restricted cash (for payment of notes payable)98,000 Allowance for uncollectible accounts 31,000Sales revenue 1,160,000Cost of goods sold468,000 Rent expense46,000 Additional Information:The notes receivable, along with any interest receivable, are due on November 22, 2025.The notes payable are due in 2028. Interest is payable annually.The investment in debt securities consist of treasury bills, all of which mature next year.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.

Working capital refers to the amount needed by the business for day to day operation. It can be…

Answered: Presented below are the ending balances…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Account Title	Debits	Credits
Cash	$ 38,000
Accounts receivable	166,000
Raw materials	42,000
Notes receivable	118,000
Interest receivable	21,000
Interest payable		$ 23,000
Investment in debt securities	50,000
Land	68,000
Buildings	1,660,000
Accumulated depreciation—buildings		638,000
Work in process	60,000
Finished goods	107,000
Equipment	336,000
Accumulated depreciation—equipment		148,000
Patent (net)	138,000
Prepaid rent (for the next two years)	78,000
Deferred revenue		54,000
Accounts payable		198,000
Notes payable		580,000
Restricted cash (for payment of notes payable)	98,000
Allowance for uncollectible accounts		31,000
Sales revenue		1,160,000
Cost of goods sold	468,000
Rent expense	46,000

Additional Information:

The notes receivable, along with any interest receivable, are due on November 22, 2025.
The notes payable are due in 2028. Interest is payable annually.
The investment in debt securities consist of treasury bills, all of which mature next year.
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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