The Following Balance Sheet Information Is Provided for Apex Company

question 66

Multiple Choice

The following balance sheet information is provided for Apex Company for Year 2:
$\begin{array}{lr}\text { Assets }\\\text { Cash }&\$5,400\\\text { Accounts receivable }&15,500\\\text { Inventory }&18,000\\\text { Prepaid expenses }&1,600\\\text { Plant and equipment, net of depreciation }&20,200\\\text { Land }&19,950\\\text { Total assets }&\$80,650\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & 4,500 \\\text { Salaries payable } & 11,500 \\\text { Bonds payable (due in ten years) } &19,000 \\\text { Common stock, no par } & 30,000 \\\text { Retained earnings } &15,650\\\text { Total liabilities and stockholders' equity }&\$80,650\end{array}$

What is the company's working capital?

• A) $20,300
• B) $4,900
• C) $22,900
• D) $24,500

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Definitions:

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The act of spending money on and acquiring luxury goods and services to publicly display wealth and social status.

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An American economist and sociologist known for his theory of the leisure class and critique of consumer culture.

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