You Are Evaluating the Balance Sheet for Campus Corporation

question 74

Multiple Choice

You are evaluating the balance sheet for Campus Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $200,000, inventory = $100,000, accrued wages and taxes = $10,000, accounts payable = $300,000, and notes payable = $600,000. What is Campus's net working capital?

• A) -$210,000
• B) $700,000
• C) $910,000
• D) $1,610,000

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Definitions:

Minimum Wage

The lowest legal hourly pay for workers, as established by law.

Way Of Thinking

A perspective or method of approaching problems and making decisions based on certain principles, values, or assumptions.

Macroeconomics

The branch of economics that studies how the aggregate economy behaves, focusing on indicators like GDP, unemployment rates, and inflation.

Microeconomics

The branch of economics that focuses on how human behavior affects the conduct of affairs within narrowly defined units, such as individual households or business firms.