Following is a comparative balance sheet for Wildfire Corporation:

Wildfire Corporation

Comparative Balance Sheet

December 31, 2020 and 2019

2020 2019

Cash $ 140,000 $ 90,000

Short-term investments 90,000 80,000

Accounts receivable, net 350,000 220,000

Inventory 500,000 430,000

Prepaid expenses 30,000 30,000

Property, plant, and equipment, net 750,000 500,000

Other assets 280,000 300,000

Total assets $2,140,000 $1,650,000

Short-term notes payable $650,000 $670,000

Accounts payable 200,000 225,000

Non-current debt 380,000 220,000

Total liabilities $1,230,000 $1,115,000

Shareholders' equity:

Common shares $500,000 $500,000

Retained earnings 410,000 35,000

Total shareholders' equity $ 910,000 $535,000

Total liabilities and shareholders' equity $2,140,000 $1,650,000

Notes: Net sales (all on credit) and cost of goods sold for the year ended December 31, 2020, were $2,000,000 and $1,200,000, respectively. The number of common shares outstanding has been 50,000 since the company began operations.

Calculate the working capital for the year ended December 31, 2020.

Select one:

a. $910,000

b. ($5,000)

c. $260,000

d. $1,025,000

Clear my choice