A Firm Has Net Working Capital of $640

question 7

Multiple Choice

A firm has net working capital of $640.Long-term debt is $4,180,total assets are $6,230,and fixed assets are $3,910.What is the amount of the total liabilities?

• A)$2,050
• B)$2,690
• C)$4,130
• D)$5,590
• E)$5,860

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Definitions:

Net Operating Income

The profit generated from a company's everyday operations, excluding income and expenses not related to its core activities.

Contribution Format

A statement or report format, primarily used in managerial accounting, that separates fixed and variable costs to evaluate the performance of a profit center.

Variable Expenses

Costs that change in proportion to the level of activity or production volume.

Break-Even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in a net income of zero.