A Firm Has $820 in Inventory,$3,200 in Fixed Assets,$670 in Accounts

question 30

Multiple Choice

A firm has $820 in inventory,$3,200 in fixed assets,$670 in accounts receivable,$390 in accounts payable,$500 in long-term debt,and $360 in cash.What is the amount of the net working capital?

• A)$890
• B)$960
• C)$3,600
• D)$3,340
• E)$1,460

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Definitions:

Operational Plans

Detailed, short-term action plans that outline how strategic goals will be achieved by an organization, specifying resources needed and processes to follow.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill, often leading to increased efficiency.

Single-use Plans

Specific actions or strategies devised for a particular purpose or project, not intended for repeated or continuous use.

Budgets

Financial plans that outline expected income and expenditure over a specific time period, used by individuals, businesses, and governments to guide economic decision-making.