If Crab Shack Company Has a Current Ratio of 2

question 32

Multiple Choice

If Crab Shack Company has a current ratio of 2.5 and current assets of $195,000, the amount of working capital is:

• A)$117,000
• B)$330,000
• C)$380,000
• D)$78,000

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Definitions:

Issuing Corporation

A company that raises capital through the sale of securities, such as shares or bonds, to investors.

Potential Investors

Individuals or entities that are considering investing capital in a particular project or company but have not yet made a commitment.

Private Debt

Private debt refers to loans or debt financing that is not issued or traded in the public markets, typically provided by private lenders.

Venture Capital

Funding provided by investors to startups and small businesses that have a high potential for long-term growth.