Swinnerton Clothing Company's Balance Sheet Showed Total Current Assets of $2,250

question 48

Multiple Choice

Swinnerton Clothing Company's balance sheet showed total current assets of $2,250, all of which were required in operations.Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes.What was its net operating working capital that was financed by investors?

• A) $1,454
• B) $1,530
• C) $1,607
• D) $1,687
• E) $1,771

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Definitions:

Primarily Liable

Being the first or main party responsible for fulfilling a financial or legal obligation.

Fraud in the Factum

Refers to a specific type of fraud where a person is deceived into signing a document not knowing its true nature or essence.

Negotiable Instrument

A written promise or order to pay a fixed amount of money, easily transferable from one party to another.

Promissory Note

A written promise to pay a specified sum of money to a certain individual or entity under agreed-upon terms.