A Corporation Reports the Following Year-End Balance Sheet Data A) $80,000
B) $155,000
C) $75,000
D) $300,000
E) $190,000

question 142

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's working capital equals: $$\begin{array} { l r l r } \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\text { Accounts receivable } & 55,000 & \text { Lore-tern liabilities } & 35,000 \\\text { Irventory } & 60,000 & \text { Corrnon stock } & 100,000 \\\text {Equipment} & \underline{145,000 }& \text { Retained earnings } & \underline{90,000} \\\text {Total assets}&\underline{ \$ 300,000 }& \text { Total liabilities ard equity } & \underline{\$ 300,000}\end{array}$$

• A) $80,000
• B) $155,000
• C) $75,000
• D) $300,000
• E) $190,000

---

Definitions:

Municipal Bonds

Debt securities issued by local governments or their agencies, often tax-exempt, to fund public projects and services.

Federal Income Tax

A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Subprime Mortgages

Loans granted to borrowers with lower credit scores and a higher risk of default than prime borrowers, usually at higher interest rates.

Credit Crisis

A financial situation characterized by a severe shortage of credit or loans, leading to widespread financial instability and economic downturn.