Earnings before interest and taxes = $400,000

Effective income tax rate = 30%

Last Year Current Year

Required cash $50,000 $80,000

Surplus cash 20,000 40,000

Accounts receivable 200,000 250,000

Inventories 300,000 360,000

Accounts payable 100,000 120,000

Accrued liabilities 40,000 50,000

Net Fixed Assests 250,000 360,000

Bank loan (short-term) 90,000 110,000

What is the amount of working capital invested in the company during the year?

		a. 110,000
		b. 105,000
		c. 340,000
		d. 515,000