As of December 31,Year 1,Gant Corporation Had a Current Ratio

question 14

Multiple Choice

As of December 31,Year 1,Gant Corporation had a current ratio of 1.29,quick ratio of 1.05,and working capital of $18,000.The company uses a perpetual inventory system and sells merchandise for more than it cost.On January 1,Year 2,Gant collected $5,200 of accounts receivable.As a result of this transaction,Gant's working capital will:

• A)Increase.
• B)Decrease.
• C)Remain the same.
• D)Cannot be determined.

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Definitions:

Primitive Variables

Primitive variables in computer programming are basic data types that hold values such as integers, booleans, and floating-point numbers, and are not objects.

Constant Variables

Variables whose values cannot be changed once they have been set initially, typically defined using final or const keywords.

Inner Class

A class defined within another class, used to handle the complexity of larger code structures by logically grouping classes that are only used in one place.

Outer Class

In Java, a class that is not nested within another class and may contain nested classes (inner classes) within it.