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:

Condition Concurrent

A situation in a contract wherein the parties involved must perform their respective obligations at the same time.

Washing

Typically refers to cleaning something by immersing and agitating it in water or another liquid.

Conditional Contract

An agreement that becomes enforceable only after certain conditions are met or fulfilled.

Condition Precedent

In a contract, an event that must occur in order for a party’s duty to arise.