The financial statements for watertown service company include the following items: 20172016cash $46,500 $41,000shortminus−term investments24,00013,000net accounts receivable57,00050,000merchandise inventory158,00049,000total assets535,000551,000accounts payable133,500126,000salaries payable17,00020,000long-term note payable57,00050,000compute working capital for 2017

The working capital for 2017 is $15,500

Explanation:

Working capital: It shows a difference between the currents and the current liabilities

In mathematically,

Working Capital = Current Assets - current liabilities

where,

Total current assets = Cash + short-term investments + net accounts receivable + merchandise inventory

= $46,500 + $24,000 + $57,000 + $158,000

= $285,500

And, the current liabilities = Accounts Payable + Salaries Payable

                                           = $133,500 + $17,000

                                           = $150,500

Now put these values to the above formula  

So, the value would equal to

= $285,500 - $150,500

= $15,500