Use the Selected Data from Pinecrest Company's Financial Statements to Answer

question 102

Multiple Choice

Use the selected data from Pinecrest Company's financial statements to answer the following question. $$\begin{array} { l r r } & \underline { 2017 } & \underline { 2016 } \\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses }& \underline { 23,000 } & \underline { 18,000 } \\\text { Total current assets } & \underline { \mathbf { \$ 1 0 9 , 0 0 0 } } & \underline { \mathbf { \$ 1 3 1 , 0 0 0 } } \\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}$$ ​
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-Refer to the data for Pinecrest Company. ?
The amount of working capital at the end of 2017 is

• A) $36,000
• B) $44,000
• C) $99,000
• D) $174,000

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Definitions:

Merchandising Company

A company that purchases goods in a finished state for the purpose of reselling them without further manufacturing.

Cost Structure

Cost structure denotes the various types of expenses a business incurs and is typically categorized into fixed and variable costs, influencing pricing and profitability.

Driver's Side Air Bag

A safety device installed in vehicles to reduce the risk of injury to the driver in the event of a collision by rapidly inflating upon impact.

Automobile Manufacturer

A company that produces and sells vehicles designed for transporting people and goods on roads.