The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?
Balance Sheet
Assets Liabilities
Current Assets Current Liabilities
Cash 54 Accounts payable 42
Accounts receivable 20 Notes payable/short-term debt 6
Inventories 16
Total current assets 90 Total current liabilities 48
Long-Term Assets Long-Term Liabilities
Net property, plant,
and equipment 120 Long-term debt 129
Total long-term assets 120 Total long-term liabilities 129
Total Liabilities 177
Stockholders' Equity 33
Total Assets 210 Total Liabilities and 210
Stockholders' Equity
A) -$12 million
B) $12 million
C) -$24 million
D) $24 million
Answer: A
You might also like to view...
A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $800 for the freight-in. The company sold the whole lot to a supermarket chain for $14,000 on account
Which of the following entries correctly records the sale? A) Accounts Receivable 14,000 Sales Revenue 14,000 Cost of Goods Sold 7,800 Merchandise Inventory 7,800 B) Merchandise Inventory 14,000 Cost of Goods Sold 14,000 C) Cost of Goods Sold 14,000 Sales Revenue 14,000 D) Accounts Receivable 14,000 Sales Revenue 14,000 Cost of Goods Sold 7,000 Merchandise Inventory 7,000
Management by objectives (MBO) includes
a. reviewing group members' proposals. b. creating action plans to achieve objectives. c. establishing unit objectives. d. all of the choices.