The following information is available is available for LaSalle Company:Total current assets₱2,800,000Total noncurrent assets5,000,000Total assets7,800,000Total current liabilities1,300,000Total liabilities3,000,000Income before income taxes690,000Interest expense150,000What is the working capital of LaSalle Company?
Question
The following information is available is available for LaSalle Company:Total current assets₱2,800,000Total noncurrent assets5,000,000Total assets7,800,000Total current liabilities1,300,000Total liabilities3,000,000Income before income taxes690,000Interest expense150,000What is the working capital of LaSalle Company?
Solution
The working capital of a company is calculated by subtracting its current liabilities from its current assets.
For LaSalle Company, the calculation would be as follows:
Total current assets (₱2,800,000) - Total current liabilities (₱1,300,000) = ₱1,500,000
So, the working capital of LaSalle Company is ₱1,500,000.
Similar Questions
The following information is available is available for LaSalle Company:Total current assets₱2,800,000Total noncurrent assets7,200,000Total assets10,000,000Total current liabilities1,300,000Total liabilities3,000,000Income before income taxes621,000Interest expense207,000What is the time interest earned ratio of the company?
The following information pertains to LaSalle Company as of December 31, 2024:Accounts receivable₱ 480,000Accounts payable300,000Notes receivable, collectible from customer on 12/31/24250,000Notes payable, payable to the bank on 12/31/24850,000Share dividend distributable75,000Mortgage Payable2,000,000Bonds payable due on 12/31/20303,000,000Accrued interest on bonds payable20,000Accrued salaries expense40,000Unearned rent income17,000Prepaid rent expense7,000Accrued interest income2,000Compute the total current liabilities for December 31, 2024.
LO 5.3 If current assets are $100,000 and current liabilities are $42,000, what is the working capital?Choose one answer from the options below.A. 200 percentB. 50 percentC. 2.0D. $58,000
LaSalle Company provided the following accounts at year end:Preference share capital, ₱100 par value₱6,000,000Ordinary share capital, ₱10 par value3,000,000Subscribed preference share capital1,800,000Subscribed ordinary share capital1,000,000Subscription receivable – Ordinary180,000Subscription receivable – Preference190,000Share premium – Preference share300,000Share premium – Ordinary share220,000Treasury share – Preference (700 shares at cost)720,000Share premium – Preference treasury share850,000Retained earnings2,000,000 How much is the total shareholders’ equity at year end?
A company has current liabilities of $2,000,000 and net working capital of $300,000. If the company has a quick ratio of 0.8, the company has inventory of
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