How Did Marble Comics' Net Working Capital to Total Assets

question 177

Multiple Choice

How did Marble Comics' net working capital to total assets ratio change from 2017 to 2018?

• A) Decreased from 0.66 to 0.43
• B) Increased from 0.54 to 0.60
• C) Decreased from 0.17 to -0.01
• D) Increased from 0.21 to 0.67
• E) Increased from 0.17 to 0.89

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Definitions:

Direct Method

A method of preparing the cash flow statement where actual cash receipts and cash payments are reported, showing the specific sources and uses of cash.

Operating Activities

These are the primary revenue-producing activities of a business, such as selling goods and services, which are reported in the statement of cash flows.

Production and Delivery

The process and logistics involved in creating products and getting them to the customer.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet items to derive cash flow from operating activities.