Using the Following Balance Sheet and Income Statement Data, What

question 190

Multiple Choice

Using the following balance sheet and income statement data, what is the total amount of working capital? $\begin{array}{lrlr}\text { Current assets } & \$ 7,000 & \text { Net income } & \$ 15,000 \\\text { Current liabilities } & 4,000 & \text { Stockholders' equity } & 21,000 \\\text { Average assets } & 44,000 & \text { Total liabilities } & 9,000\\\text { Total assets } \quad 30,000\end{array}$ Average common shares outstanding was 10,000.

• A) $7,000
• B) $5,000
• C) $3,000
• D) $2,000

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Definitions:

Goods And Services

The products and activities that satisfy human wants or needs, goods being tangible items and services being intangible.

Barter

A system of exchange where goods or services are traded directly for other goods and services without the use of money.

Commodity Money

Commodity Money is a type of currency in which the value comes from a commodity of which it is made, such as gold or silver coins.

Largely Self-Sufficient

Describes an entity or community that can fulfill nearly all of its needs without external assistance.