The Following Balance Sheet Information Is Provided for Apex Company

question 118

Multiple Choice

The following balance sheet information is provided for Apex Company for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 5,400 \\\text { Accounts receivable } & 15,500 \\\text { Inventory } & 18,000 \\\text { Prepaid expenses } & 1,600 \\\text { Plant and equipment, net of depreciation } & 20,200 \\\text { Land } & \underline{ 19,950 }\\\text { Total assets } &\underline{ \$ 80,650}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$ 4,500 \\\text { Salaries payable } & 11,500 \\\text { Bonds payable (Due in ten years) } & 19,000 \\\text { Common stock, no par } & 30,000 \\\text { Retained earnings } &\underline{ 15,650} \\\text { Total liabilities and stockholders' equity }& \$ 80,650\end{array}$
What is the company's working capital?

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a company, which represents assets minus liabilities.

Top Management

The highest level of managers in an organization, including positions like CEO and CFO, responsible for setting strategic goals and company policies.

Board Of Directors

The governing body of a corporation, elected by common stockholders.

Acquirer's Stockholders

The shareholders of a company that is purchasing another company or its assets through a merger or acquisition.