Using the Following Balance Sheet and Income Statement Data, What

question 160

Multiple Choice

Using the following balance sheet and income statement data, what is the total amount of working capital? $$\begin{array} { l c l r } \text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \\\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \\\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000 \\\text { Total assets } & 90,000 & & \\\text { Average common shares outstanding was } 15,000 . &\end{array}$$

• A)$7,000
• B)$5,000
• C)$9,000
• D)$2,000

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Definitions:

Normal Good

A type of good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.

Demand Function

A mathematical formula that describes the relationship between the quantity of a good or service demanded and its price, along with other factors like income and the prices of related goods.

Substitution Effect

The effect observed when consumers replace more expensive items with cheaper alternatives due to changes in relative price levels, affecting demand for goods.

Utility Function

Describes how different combinations of goods or services (or different outcomes) provide levels of satisfaction or utility to an individual.