The Following Balance Sheet Information Is Provided for Apex Company

question 109

Multiple Choice

The following balance sheet information is provided for Apex Company for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 4,000 \\\text { Accounts receivable } & 10,150 \\\text { Inventory } & 14,000 \\\text { Prepaid expenses } & 800\\\text { Plant and equipment, net of depreciation }&18,700 \\\text { Land }&12,600 \\\text { rotal assets }& \$ 60,250\\\text { Liabilities and stockholders' equity }\\\text { Accounts payable }&\$ 2,310 \\\text { Salaries payable }&9,030 \\\text { Bonds payable (due in ten years) }&8,000 \\\text { Common stock, no par }&20,910 \\\text { Retained earnings }&20,000\\\text { Total liabilities and stockholders' equity }&\$60,250\end{array}$ What is the company's working capital?

• A) $2,810
• B) $25,840
• C) $8,810
• D) $17,610

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Definitions:

Standard Of Living

denotes the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Nominal GDP

Refers to the gross domestic product measured at current market prices, without adjusting for inflation.

Technological Change

A change in the methods of production and product innovation that leads to greater efficiency and productivity.

Unemployment

A situation where individuals who are capable of working and are actively seeking employment are unable to find a job.