The Accounts of Weston Inc

question 55

Multiple Choice

The accounts of Weston Inc.indicate the following changes in long-term assets and capital for the past year: (1) Fifty thousand (50,000) shares of common stock were sold at $25 per share.
(2) Two million dollars ($2 million) in bonds matured and were retired.
(3) Dividends of $1 million were paid.
(4) Net fixed assets declined by $200,000.
(5) Net income was calculated to be $2 million.
(6) Depreciation expense was $1.5 million.
What was the increase or decrease in net working capital?
(Hint: Changes in net fixed assets incorporate changes in both gross fixed assets and accumulated depreciation. )

• A) +$450,000
• B) −$250,000
• C) −$1,950,000
• D) +$1,950,000
• E) +$3,300,000

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Definitions:

Facial Skeleton

The framework of bones that supports the face, including the jaw, cheekbones, and nasal bones.

Thoracic Skeleton

The part of the skeleton that comprises the ribs, thoracic vertebrae, and sternum, providing protection and support to the thorax.

Appendicular Skeleton

The Appendicular Skeleton comprises the bones of the limbs and girdles that are attached to the axial skeleton, facilitating movement and supporting the weight of the body.

Scapula

A flat, triangular bone located in the upper back, known commonly as the shoulder blade.