John Boy Industries Has a Cash Balance of $59,000, Accounts

question 31

Multiple Choice

John Boy Industries has a cash balance of $59,000, accounts payable of $139,000, inventory of $115,000, accounts receivable of $220,000, notes payable of $175,000, and accrued wages and taxes of $23,000. How much net working capital does the firm need to fund?

• A) $140,000
• B) $34,000
• C) −$25,000
• D) $57,000

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Definitions:

Corporate Social Responsibility

Business practices involving initiatives that benefit society and go beyond the interests of the company.

High-Performance Climates

Work environments characterized by high levels of productivity, job satisfaction, and motivation, where employees are engaged and committed.

Information Technology

Applying computers, storage units, network systems, and other tangible tools, infrastructures, and techniques to produce, process, secure, and exchange any kind of electronic data.

Contingency Thinking

An approach that considers various possible futures or outcomes and prepares strategies accordingly.