Charter Tours Has the Following Balance Sheets: What Is

question 68

Multiple Choice

Charter Tours has the following balance sheets: What is the amount of net working capital for 2017?

• A)$751
• B)$1,057
• C)$1,128
• D)$1,734
• E)$826

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Definitions:

Salvage Value

The evaluated resale price of an asset after its lifespan of usefulness.

Straight-Line Method

A depreciation technique where an asset loses an equal amount of value each year over its useful life.

Payback Period

The duration needed to recoup the expenses of an investment.

Simple Rate of Return

A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several investments, calculating net annual profit divided by initial investment cost.