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    Working Capital - Application of Financial Concepts

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    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.

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    Solution Summary

    This solution helps to calculate working capital.