You Are Evaluating the Balance Sheet for Epic Corporation

question 95

Multiple Choice

You are evaluating the balance sheet for Epic Corporation. From the balance sheet you find the following balances: cash and marketable securities = $500,000, accounts receivable = $200,000, inventory = $100,000, accrued wages and taxes = $50,000, accounts payable = $60,000, and notes payable = $200,000. Calculate Epic's net working capital.

• A) $490,000
• B) $540,000
• C) $690,000
• D) $800,000

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Definitions:

Framers

The group of individuals who shaped and drafted the United States Constitution during the Constitutional Convention of 1787.

Constitution

A set of fundamental principles or established precedents according to which a state or other organization is governed, outlining the structure of government and the rights of citizens.

Federalists

Advocates for a strong central government and supporters of the ratification of the U.S. Constitution in the late 18th century, as opposed to anti-federalists who favored stronger state governments.

Antifederalists

Political figures and activists in early American history who opposed the creation of a strong federal government, advocating instead for states' rights and a decentralized political structure.