Lamar Company Has Total Current Assets of $122,000 and Total

question 77

Multiple Choice

Lamar Company has total current assets of $122,000 and total current liabilities of $57,000.What is the amount of working capital for Lamar Company?

• A)$ 57,000
• B)$ 65,000
• C)$ 122,000
• D)$ 179,000

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Definitions:

Indirect Method

A method of reporting the cash flows from operating activities that begins with net income and adjusts for revenues and expenses that do not involve the receipt or payment of cash.

Operating Activities

Business processes related to the core functions of a company that generate revenue, such as sales and production.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been accounted for, typically reported on the bottom line of the income statement.

Investing Activities

Financial actions related to acquiring and disposing of non-current assets and investments, a critical part of a company's capital allocation strategy.