You Are Evaluating the Balance Sheet for Goodman's Bees Corporation

question 35

Multiple Choice

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $1,100,000, inventory = $2,000,000, accrued wages and taxes = $500,000, accounts payable = $600,000, and notes payable = $100,000. Calculate Goodman's Bees' net working capital.

• A) $2,000,000
• B) $2,100,000
• C) $1,400,000
• D) $1,900,000

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Definitions:

Relevant Market

The market in which a particular product or service is sold, considering the competition and the demand of consumers.

Rule Of Reason

A legal doctrine that determines the legality of certain business practices based on their harm or benefit to competition.

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Any bodily movement produced by skeletal muscles that requires energy expenditure, contributing to health and fitness.

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A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems (arrhythmias), and heart defects, among others.