The Following Accounts Have Been Selected from a Company's Balance

question 27

Multiple Choice

The following accounts have been selected from a company's balance sheet with values in 000's: Accounts payable $205, Inventory $405, Bank Overdraft $143, Land $2,780, Bonds $2,450, and Accounts Receivable $273. What is the amount of working capital available to the company?

• A) ($75,000)
• B) $68,000
• C) $262,000
• D) $330,000
• E) $660,000

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Definitions:

Nonrival Good

Good for which the marginal cost of its provision to an additional consumer is zero.

Marginal Social Cost

The additional cost to society of producing one extra unit of a good or service, considering both private costs and externalities.

Marginal Private Cost

The additional cost incurred by the producer for producing an extra unit of a good, not considering external effects.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.