To determine the total amount of working capital, we need to use the following formula:

$\text{Working Capital} = \text{Current Assets} - \text{Current Liabilities}$

Step 1: Identify Current Assets

Current assets are assets that are expected to be converted into cash within one year. From the provided data, the relevant current assets are:

• Accounts receivable: $158,000
• Inventory: $264,900
• Short-term investments: $388,600
• Cash: $266,900

These are all current assets, so we can sum them up:

$\text{Total Current Assets} = 158,000 + 264,900 + 388,600 + 266,900 = 1,078,400$

Step 2: Identify Current Liabilities

Current liabilities are obligations the company expects to settle within one year. From the provided data, the current liabilities are:

• Accounts payable: $210,100
• Salaries and wages payable: $86,900

These are the current liabilities, so we sum them up:

$\text{Total Current Liabilities} = 210,100 + 86,900 = 297,000$

Step 3: Calculate Working Capital

Now we subtract the total current liabilities from the total current assets to find the working capital:

$\text{Working Capital} = 1,078,400 - 297,000 = 781,400$

Conclusion:

The total working capital is $781,400.

Would you like to explore any specific details or have questions about this process?

Here are 5 follow-up questions that might help expand your understanding:

1. How does working capital influence a company's financial health?
2. What are some common ways to increase working capital?
3. What differentiates current assets from non-current assets?
4. How do companies typically finance their working capital needs?
5. How does negative working capital affect a company's operations?

Tip: Keeping track of your current liabilities is crucial as it directly impacts the liquidity of the company.