Starrs Company Has Current Assets of $300,000 and Current Liabilities

question 3

Multiple Choice

Starrs Company has current assets of $300,000 and current liabilities of $200,000.Which of the following transactions would increase its working capital?

• A) Prepayment of $50,000 of next year's rent.
• B) Refinancing $50,000 of short-term debt with long-term debt.
• C) Acquisition of land valued at $50,000 by issuing new common shares.
• D) Purchase of $50,000 of marketable securities for cash.

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