Use the Table for the Question(s)below

question 27

Multiple Choice

Use the table for the question(s) below.
The quarterly working capital levels for Hasbeen Toys are presented in the following table (in $ millions) :
-The permanent working capital needs for Hasbeen Toys is closest to:

• A)$1100 million
• B)$2435 million
• C)$1275 million
• D)$770 million

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific moment in time, showing assets, liabilities, and shareholders' equity.

Direct Method

A cost allocation method that assigns all costs directly to cost objects without going through intermediate cost pools.

Prepaid Expense

Payments made in advance for goods or services that will be received in the future.

Direct Method

A method for preparing a cash flow statement where cash receipts and payments are reported directly, without using adjustments for non-cash items.