**M9-6 (Algo) Computing Working Capital LO9-5**The balance sheet for Stevenson Corporation reported the following:- Noncurrent assets: $190,000- Total assets: $450,000- Noncurrent liabilities: $250,000- Total stockholders' equity: $91,000Compute Stevenson’s working capital.**Working Capital Calculation:**A field titled "Working capital" is provided to input the computed working capital value, but the box is currently empty.To compute the working capital, you need to use the formula:$ \text{Working Capital} = \text{Total Current Assets} - \text{Total Current Liabilities} $However, the provided information does not explicitly mention the current assets or current liabilities. But we can infer :1. **Total Current Assets** can be calculated as: $ \text{Total Current Assets} = \text{Total Assets} - \text{Noncurrent Assets} $ $ 450,000 - 190,000 = 260,000 $2. **Total Current Liabilities** can be found using: $ \text{Total Liabilities} - \text{Noncurrent Liabilities} $ $ \text{Total Liabilities} = \text{Total Current Assets} + \text{Total Noncurrent Liabilities} = 260,000 + 250,000 = 510,000 $ $ \text{Total Current Liabilities} = 510,000 - 250,000 = 260,000 $ So, $ \text{Working Capital} = 260,000 - 160,000 $.The provided diagram includes a table with a cell labeled "Working capital" which is empty, intended for the result of this computation.

The accounting equation is considered the basic principle of accounting that is used to prepare a…

The balance sheet for Stevenson Corporation reported the following noncurrent assets, $190,000; total assets, $450,000; noncurrent liabilities, $250,000; total stockholders' equity, $91,000. Compute Stevenson's working capital. Working capital

The balance sheet for Stevenson Corporation reported the following noncurrent assets, $190,000; total assets, $450,000; noncurrent liabilities, $250,000; total stockholders' equity, $91,000. Compute Stevenson's working capital. Working capital

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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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

**M9-6 (Algo) Computing Working Capital LO9-5**

The balance sheet for Stevenson Corporation reported the following:
- Noncurrent assets: $190,000
- Total assets: $450,000
- Noncurrent liabilities: $250,000
- Total stockholders' equity: $91,000

Compute Stevenson’s working capital.

**Working Capital Calculation:**

A field titled "Working capital" is provided to input the computed working capital value, but the box is currently empty.

To compute the working capital, you need to use the formula:

$ \text{Working Capital} = \text{Total Current Assets} - \text{Total Current Liabilities} $

However, the provided information does not explicitly mention the current assets or current liabilities. But we can infer :

1. **Total Current Assets** can be calculated as:
$ \text{Total Current Assets} = \text{Total Assets} - \text{Noncurrent Assets} $
$ 450,000 - 190,000 = 260,000 $

2. **Total Current Liabilities** can be found using:
$ \text{Total Liabilities} - \text{Noncurrent Liabilities} $
$ \text{Total Liabilities} = \text{Total Current Assets} + \text{Total Noncurrent Liabilities} = 260,000 + 250,000 = 510,000 $
$ \text{Total Current Liabilities} = 510,000 - 250,000 = 260,000 $

So,
$ \text{Working Capital} = 260,000 - 160,000 $.

The provided diagram includes a table with a cell labeled "Working capital" which is empty, intended for the result of this computation.

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