## Step-by-Step Solution ### Step 1: Understand Working Capital Formula Working capital is calculated as: \[ \text{Working Capital} = \text{Current Assets - \textCurrent Liabilities} \] ### Step 2: Identify Current Assets and Liabilities **Current Assets:** - Inventory: $735 - Accounts receivable: $220 (Assuming no cash or other current assets are provided.) Total current assets = $735 + $220 = $955 **Current Liabilities:** - Accounts payable: $315 ### Step 3: Calculate Working Capital Plug values into the formula: \[ \text{Working Capital} = \$955 - \$315 = \$640 \] ### Step 4: Compare to Provided Answers The calculated working capital ($640) does not match any of the provided choices. However, the question states "and $95 working capital does the firm have?" which appears to be a misphrasing. If the question is actually asking "what is the firm's working capital?" then the correct answer is $640. If $95 is meant to be a distractor or an error, we ignore it. ### Step 5: Double Check for Missing Items Check if fixed assets are current assets. They are not. Only inventory and accounts receivable are current assets in the data given. ### Final Answer **The firm's working capital is $640.** None of the provided multiple choice answers match this value, indicating either a possible error in the question or missing information. If you must choose from the options, please clarify or check for missing data.