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.

Analyze the effects of compensation strategies on bargaining behaviors and outcomes.

Understand strategic actions in bargaining scenarios and their psychological impact on negotiation participants.

Understand the concept of expected value and how to calculate it for simple scenarios.

Compare and make decisions between different investment projects based on expected value calculations.

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Definitions:

Multiple Market Segments

The practice of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups with similar needs or characteristics.

Geographic Markets

Market segments defined by geographic areas where customers share similar needs and characteristics.

Increased Sales

An upward trend in the quantity of products or services sold, indicating growth in revenue for a business.

Business Firm

An organization engaged in commercial, industrial, or professional activities with the aim of generating profits.