Refer to the Following Selected Financial Information from McCormik, LLC

question 222

Multiple Choice

Refer to the following selected financial information from McCormik, LLC. Compute the company's working capital for Year 2. $$\begin{array} { | l | r | r | } \hline & \text { Year 2 } & { \text { Year 1 } } \\\hline \text { Cash } & \$ 37,500 & 36,850 \\\hline \text { Short-term investments } & 90,000 & 90,000 \\\hline \text { Accounts receivable, net } & 85,500 & 86,250 \\\hline \text { Merchandise inventory } & 121,000 & 117,000 \\\hline \text { Prepaid expenses } & 12,100 & 13,500 \\\hline \text { Plant assets } & 388,000 & 392,000 \\\text { Accounts payable } & 113,400 & 111.750 \\\hline \text { Net sales } & 711,000 & 706,00 \\\hline \text { Cost of goods sold } & 390,000 & 385,500 \\\hline\end{array}$$

• A) $232,700.
• B) $220,600.
• C) $147,200.
• D) $111,700.
• E) $142,700.

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Small equity portions representing part ownership in a company, specifically quantified as three units of stock.

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Unable to be changed, reversed, or recovered; a decision or action that is final and binding.