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Read the Information Below About Cargo Corporation

question 44

Essay

Read the information below about Cargo Corporation.
Required:
Calculate the amount of working capital at December 31, 2015 for Cargo Corp.What can you learn from the current ratio that you cannot learn from the amount of working capital?


Definitions:

Subsidiary Company

A company that is completely or partially owned and controlled by another company, known as the parent company.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations.

Held-to-Maturity Securities

Investment securities that a company has the intent and ability to hold until a specified maturity date.

Interest Revenue

Income earned from lending investments or depositing funds in interest-bearing accounts, often reported on the income statement.

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