1.Below are the account balances prepared by the bookkeeper for CBX Company as of December 31, 20x1:

Assets

Cash

30,000

Accounts receivable, net

88,000

Inventory

80,000

Prepaid income tax

16,000

Prepaid assets

10,000

Investment in subsidiary

20,000

Land held for sale

56,000

Property, plant and equipment

100,000

Totals

400,000

Liabilities

Accounts payable

40,000

Notes payable

200,000

240,000

Additional information:

- Cash consists of the following:

Petty cash fund (unreplenished petty cash expenses, 3,000)4,000

Cash in bank(20,000)

Payroll fund28,000

Tax fund14,000

Cash to be contributed to a sinking fund set up for the retirement

of bonds maturing on December 31, 20x34,000

Total Cash30,000

- Checks amounting to 61,000 were written to suppliers and recorded on December 30, 20x1, resulting to a bank overdraft of 20,000. The checks were mailed on January 5, 20x2.

- Accounts receivable consists of the following:

Accounts receivable80,000

Allowance for uncollectibility(10,000)

Credit balance in customers' accounts(6,000)

Selling price of unsold goods sent on consignment to YXW Co.

at 120% of cost and excluded from CBX's inventory 24,000

Accounts receivable, net88,000

-The inventory includes cost of goods amounting to 20,000 that are expected to be sold beyond 12 months but within the ordinary course of business. Also, the inventory includes cost of consigned goods received on consignment from YSI Co. amounting to 10,000.

-Prepaid income tax represents excess of payments for quarterly corporate income taxes during 20x1 over the actual annual corporate income tax as of December 31, 20x1.

-Prepaid assets includes a 4,000 security deposit on an operating lease which is expected to expire on March 31, 20x3. The security deposit will be received on lease expiration.

-The land qualified for classification as "asset held for sale" under PFRS 5 Non-current Assets Held for Sale and Discontinued Operations as of December 31, 20x1.

-Accounts payable is net of 12,000 debit balance in suppliers' accounts. Accounts payable includes the cost of goods held on consignment from YSI Co. which were included in inventory.

-The notes payable are dated July 1, 20x1 and are due on July 1, 20x4. The notes payable bears an annual interest rate of 10%. Interest is payable annually.

How much is the adjusted working capital?

a.334,000

b.289,000

c.264,000

d.215,000

(can you show the whole solution and explanation)