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Analysis of assets) You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Galena Ski Products, which manufactures
Analysis of assets) You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Galena Ski Products, which manufactures skis and bindings. Because you may need to sell the shares within the next two years to finance your university education, you start your analysis of the company data by calculating (1) working capital, (2) the current ratio, and (3) the quick ratio. Galenas statement of financial position is as follows:
Current assets | ||
Cash | $156,700 | |
Inventory | 189,900 | |
Prepaid expenses | 20,700 | |
Non-current assets | ||
Land | 48,500 | |
Building and equipment | 157,300 | |
Other | 13,900 | |
Total | $587,000 | |
Current liabilities | $153,400 | |
Long-term debt | 179,000 | |
Share capital | 80,000 | |
Retained earnings | 174,600 | |
Total | $587,000 |
(a1)
What amount of working capital is currently maintained?
Working capital | $ |
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