HW3

Question 2

Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2021.

Account Title		Debits			Credits
Cash	$	29,000
Accounts receivable		148,000
Raw materials		33,000
Notes receivable		109,000
Interest receivable		12,000
Interest payable				$	14,000
Investment in debt securities		41,000
Land		59,000
Buildings		1,480,000
Accumulated depreciationbuildings					629,000
Work in process		51,000
Finished goods		98,000
Equipment		318,000
Accumulated depreciationequipment					139,000
Patent (net)		129,000
Prepaid rent (for the next two years)		69,000
Deferred revenue					45,000
Accounts payable					189,000
Notes payable					490,000
Restricted cash (for payment of notes payable)		89,000
Allowance for uncollectible accounts					22,000
Sales revenue					980,000
Cost of goods sold		459,000
Rent expense		37,000

Additional Information:

a. The notes receivable, along with any accrued interest, are due on November 22, 2022.

b. The notes payable are due in 2025. Interest is payable annually.

c. The investment in debt securities consist of treasury bills, all of which mature next year.

d. Deferred revenue will be recognized as revenue equally over the next two years.

Required: Determine the companys working capital (current assets minus current liabilities) at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Current assets: Total current assets 0 Current liabilities: Total current liabilities 0 Working capital