Mickey Corporation Has Total Current Assets Equal to $80,000 and Working

question 69

Multiple Choice

Mickey Corporation has total current assets equal to $80,000 and working capital of $20,000. Minnie Company has the same amount of working capital, but it has total current assets of $300,000. The company with the better working capital position is:

• A)Mickey Corporation.
• B)Minnie Company.
• C)They both have equally good working capital positions.
• D)indeterminable with the information given.

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Definitions:

Nondirectional Hypothesis

A type of hypothesis that specifies that a difference or relationship exists, but does not predict the direction of the difference or relationship.

Two-tailed Hypothesis

A hypothesis test that allows for the possibility of a relationship in both directions, not specifying the direction of the relationship.

Invalid Hypothesis

A hypothesis that is disproven or found to be incorrect based on evidence or statistical analysis.

Correlation

A statistical measure that indicates the degree to which two variables fluctuate together, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).