Based on the Following Data, What Is the Amount of Working

question 69

Multiple Choice

Based on the following data, what is the amount of working capital? $\begin{array}{lr}\text {Accounts payable. }&\$64,000\\\text { Accounts receivable}&114,000\\\text { Cash }&70,000\\\text {Intangible assets }&100,000\\\text {Inventory. }&138,000\\\text { Long-term investments}&160,000\\\text { Long-term liabilities}&200,000\\\text {Short-term investments. }&80,000\\\text {Notes payable (short-term) }&56,000\\\text {Property, plant, and equipment }&1,340,000\\\text {Prepaid insurance }&2,000\\\end{array}$

• A)$284,000
• B)$332,000
• C)$370,000
• D)$326,000

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Definitions:

Specialization And Trade

A principle whereby individuals, firms, or countries produce a limited range of goods with higher efficiency and trade for other goods they are less efficient at producing.

International Trade

The exchange of goods and services between countries, driven by comparative advantages.

Exports And Imports

The transactions in goods and services where exports refer to selling domestically produced goods or services abroad, and imports are those bought from foreign producers.

Diverse Quantity

A variety in the amount or number of items or elements in a set.