The Above Diagram Shows a Balance Sheet for a Certain

question 7

Multiple Choice

The above diagram shows a balance sheet for a certain company. If the company pays back all of its accounts payable today using cash, what will its net working capital be?

• A)$131 million
• B)$6 million
• C)$88 million
• D)$45 million

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Definitions:

Total Equity

Represents the value left in a company after all liabilities have been subtracted from assets, essentially the net assets owned by shareholders.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Long-term Debt

Loans and financial obligations lasting more than one year, often used to finance capital investments or operations.