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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Definitions:

Chloroplasts

Organelles found in plant and algal cells responsible for photosynthesis, containing the pigment chlorophyll.

Stramenopiles

A diverse group of eukaryotes that includes diatoms, golden algae, and brown algae, characterized by the presence of straw-like hairs on the flagella of their reproductive cells.

Photosynthetic

Relating to the process by which green plants, algae, and some bacteria convert light energy, usually from the sun, into chemical energy stored in glucose.

Brown Algae

Multicelled marine protists with a brown accessory pigment in their chloroplasts.