Wu Systems Has the Following Balance Sheet ?
A) $990
B) $911
C) $1,010
D) $1,168
E)

question 54

Multiple Choice

Wu Systems has the following balance sheet.Assume that all current assets are used in operations.How much net operating working capital does the firm have? $\begin{array}{lrlr}\text { Cash } & \$ 100 & \text { Accounts payable } & \$ 200 \\\text { Accounts receivable } & 650 & \text { Accruals } & 110 \\\text { Inventory } & 550 & \text { Notes payable } & 590 \\\text { Current assets } & \$ 1,300 & \text { Current liabilities } & \$ 900 \\\text { Net fixed assets } & \$ 1,000 & \text { Long-term debt } & 600 \\& & \text { Common equity } & 300 \\& & \text { Retained earnings } & 500 \\\text { Total assets } & \$ 2,300 & \text { Total liab. \& equity } & \$ 2,300 \\\hline\end{array}$
?

• A) $990
• B) $911
• C) $1,010
• D) $1,168
• E) $782

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Definitions:

Labor Costs

The total sum of all wages, benefits, and taxes paid to employees by an employer for work performed.

Production Costs

The total expenses incurred in the manufacturing of a product, including labor, materials, and overhead.

Wage Rates

The standardized amount of compensation paid to an employee by an employer in exchange for labor, typically measured per hour or piece of work.

Labor Costs

Represents the total expenditure by businesses for paying their employees, including wages, benefits, and taxes associated with employing labor.