Use the Table for the Question(s)below

question 42

Multiple Choice

Use the table for the question(s) below.

-The balance sheet for a small firm is shown above.All amounts are in thousands of dollars.What is this firm's Net Working Capital?

• A)$30,000
• B)$40,000
• C)$47,000
• D)$89,000
• E)$42,000

---

Definitions:

Tax Rate Structure

The percentage of a tax base that must be paid in taxes—25 percent of income, for example.

Tax Base

The tax base is the total amount of income, property, assets, or other wealth that is subject to taxation by a taxing authority.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, indicating the impact of each additional dollar of income on taxes owed.

Additional Income

Extra earnings obtained beyond the regular sources of income or revenue.