Balance sheet; Current versus noncurrent classification
Response to the following problem:
Presented below is the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2016.
|
Account Tide
|
Debits
|
Credits
|
|
Cash
|
20,000
|
|
|
Accounts receivable
|
130,000
|
|
|
Raw materials
|
24,000
|
|
|
Note receivable
|
100,000
|
|
|
Interest receivable
|
3000
|
|
|
Interest payable
|
|
5,000
|
|
Marketable securities
|
32,000
|
|
|
Land
|
50,000
|
|
|
Buildings
|
1,300,000
|
|
|
&cumulated depreciation--buildings
|
|
620,000
|
|
Work an process
|
42,000
|
|
|
Finished goods
|
89.000
|
|
|
Equipment
|
300.000
|
|
|
Accumulated depreciation-equipment
|
|
130,000
|
|
Patent (net of amortization)
|
120,000
|
|
|
Prepaid rent (for the next two years)
|
60,000
|
|
|
Deferred revenue
|
|
36,000
|
|
Accounts payable
|
|
180.000
|
|
Note payable
|
|
400,000
|
|
Cash restricted for payment of note payable
|
80,000
|
|
|
Allowance for uncolloctible accounts
|
|
13,000
|
|
Sales revenue
|
|
800,000
|
|
Cost of goods sold
|
450,000
|
|
|
Rent expense
|
28,000
|
|
Additional Information:
1. The note receivable, along with any accrued interest, is due on November 22, 2017.
2. The note payable is due in 2020. Interest is payable annually.
3. The marketable securities consist of treasury bills, all of which mature in the next year.
4. Deferred revenue will be recognized as revenue equally over the next two years.
Required:
Determine the company's working capital (current assets minus current liabilities) at December 31, 2016.