Use the Following Data to Determine the Total Amount of Working

question 10

Multiple Choice

Use the following data to determine the total amount of working capital. $\begin{array} { l } \text { Koonce Office Supplies}\\ \text { Balance Sheet }\\ \text { December 31,2022}\\\begin{array}{lr}\text { Cash } & \$ 195,000 \\\text { Accounts receivable } & 150,000 \\\text { Inventory } & 165,000 \\\text { Prepaid insurance } & 90,000 \\\text { Stock investments } & 255,000 \\\text { Land } & 270,000\\ \text { Buildings}&\$315,000\\ \text {Less: Accumulated }\\\text { depreciation } (60,000) & 255,000 \\\text { Trademarks } & 210,000 \\\text { Total assets } & \$ 1590,000\\\end{array}&\begin{array}{lr}\text { Accounts payable } & \$ 210,000 \\\text { Salaries and wages payable } & 30,000 \\\text { Mortgage payable } & 240,000 \\\quad \text { Total liabilities } & 480,000\\\\\\\text { Common stock } & 360,000 \\\text { Retained earnings } &{750,000} \\\text { Total stockholders' equity } & 1,110,000 \\\text { Total liabilities and } & \\\text { stockholders' equity } & \$ 1590,000\\\end{array}\end{array}$

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Definitions:

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, especially a percentage of the money received from a sale.

Sale Probability

Sale probability is the likelihood that a product or service will be purchased within a specified timeframe, influenced by factors such as price, consumer preferences, and market conditions.

Shirk

involves avoiding or neglecting responsibilities and duties, particularly in a work context.

Moral Hazard

A situation where a party is more likely to take risks because the negative consequences of the risk will be borne by another party.