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:

Transportation Costs

The expenses involved in moving goods from one location to another, including fuel, labor, and maintenance of transportation vehicles.

Aggregation

The process of combining multiple units or data points into a single entity or dataset for analysis or reporting purposes.

Coordinating Orders

The process of ensuring that orders from different customers or for various products are managed in a way that optimizes resources and delivery times.

Fixed Ordering Cost

The constant expense associated with placing an order, regardless of the order size, including administrative expenses and fees.