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:

Situational Variables

External factors or conditions that can influence the outcome of research or the behavior of individuals in a given context.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial stages of human development.

Locomotor-genital Conflict

A psychoanalytic concept suggesting a developmental stage tension between the desire for mobility and sexual expression.

Initiative Versus Guilt

A stage in Erik Erikson's theory of psychosocial development where children learn to exert control and power over their environment or experience guilt for their efforts to exert control.