Question
Balance sheet data for Gusher Oil Company as of 12/31/29 is as follows for Lease Z: Leasehold costs $750,000 Less: Accumulated DD&A ($270,000) Net leasehold
Balance sheet data for Gusher Oil Company as of 12/31/29 is as follows for Lease Z:
Leasehold costs | $750,000 |
Less: Accumulated DD&A | ($270,000) |
Net leasehold costs | $480,000 |
Wells and related E&F—IDC | $3,600,000 |
Less: Accumulated DD&A—IDC | ($1,550,000) |
Net wells and related E&F—IDC | $2,050,000 |
Wells and related E&F—L&WE | $2,000,000 |
Less: Accumulated DD&A—L&WE | ($300,000) |
Net wells and related E&F—L&WE | $1,700,000 |
Gusher’s activities during 2030 related to Lease Z were as follows:
Exploratory dry hole drilled | $900,000 |
Development dry hole drilled | $980,000 |
Tanks, separators, etc., installed | $370,000 |
Production | 360,000 bbl |
Proved reserves, 12/31/30 | 3,600,000 bbl |
Proved developed reserves, 12/31/30 | 3,300,000 bbl |
Requirement:
Calculate the Working Capital for 2030.
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