Holly's Meat Markets Has Accumulated $128,900 in Net Working Capital

question 421

Multiple Choice

Holly's Meat Markets has accumulated $128,900 in net working capital. Which one of the following will reduce this amount?

• A) A reduction in accounts payable.
• B) An increase in inventory.
• C) An increase in a current liability.
• D) A reduction in the cash balance.
• E) An increase in accounts receivable.

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Definitions:

Trust Holdings

Assets held in a trust by one party for the benefit of another, including real estate, stocks, bonds, and other investments.

Tax Rate

The percentage at which an individual or entity is taxed on their income or property.

Employee Stock Ownership Plans

Retirement plans designed to give employees ownership interest in the company by allowing them to acquire stock, contributing to company success and employee benefit.

Tax Advantages

Financial benefits derived from specific tax laws or regulations that reduce the amount of tax payable to federal or state governments.