Montreal Electronics Has the Following Data Available $\text{\(\underline {Current Liabilities:}\)}$

question 38

Multiple Choice

Montreal Electronics has the following data available:
$\begin{array} { l l l } \text { \(\underline {Current Assets}\) : } & \underline { 2 \times 13 } & \underline { 2 \times 12 } \\\text { Cash } & \$ 150 & \$ 57 \\\text { Accounts Receivable } & 95 & 70 \\\text { Accrued Interest Receivable } & 15 & 15 \\\text { lnventery } & 20 & 60 \\\text { Prepaid Rent } & \underline { 10 } & \overline { - } \\\text { Total Current Assets } & \$ 290 & \$ 202\end{array}$
$\text{\(\underline {Current Liabilities:}\) }$
$\begin{array} { l l l } \text { Accounts Payable } & \$ 90 & \$ 55 \\\text { Accrued Wages Payable } & 24 & 10 \\\text { Accrued Income Taxes Payzble } & 16 & 12 \\\text { Accrued Interest Payable } & 9 & 9 \\\text { Unearned Sales Revenue } & - - & 5 \\\text { Current Portion } & & \\\text { of Long-Term Notes Payable } & \underline { 80 } & \overline { - } \\\text { Total Cument Lizbilities } & \$ 219 & \$ 101\end{array}$
$\text {\(\underline {Long-Term Liabilities:}\) }$
$\begin{array}{lccc}\text { Notes Payable} & 40 & 120\\ \text { Total Liabilities } & \$ 259 & \$ 221 \end{array}$
What is the working capital for Montreal Electronics in 2X13? Has the working capital improved or not improved since 2X12?

• A)$101,not improved
• B)$101,improved
• C)$ 71,improved
• D)$ 71,not improved
• E)$150,not improved

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