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Working Capital - Application of Financial Concepts

The Green Restaurant
Balance Sheet

Assets Liabilities

Cash $15,905.00 Accounts Payable $500.00
Food $1,200.00 Accrued Expenses Payable $4,300.00
Prepaid Rent $1,500.00 Notes Payable $9,000.00
Equipment $10,000.00 Accrued Interest $111.00
Accumulated Depreciation $(160.00) $13,911.00
Owner's Equity

Fred Green, Capital $5,000.00
Retained Earnings $14,534.00

Total Assets $28,445.00 Total Liabilities + Owner's Equity $28,445.00
The Green Restaurant
Income Statement

Food Sales Revenue $39,965

Cost of Food Sales 13810
Wages Expense 10000
Supplies Expense 300
Utilities Expense 1000
Advertising Expense 1200
Rent Expense 750
Laundry Expense 500
Administrative Expense 2000
Interest Expense 111
Depreciation Expense 160
Repairs and Maintenance 500
Kitchen Fuel 100
Total Expenses $30,431.00

Net Income $9,534
Compute working capital and create a report in a Microsoft Word document showcasing the calculations used for determining working capital and also describing the uses of working capital for the financial health of The Green Restaurant.

Solution Summary

This solution helps to calculate working capital.