Yukon Company Has Total Current Liabilities Equal to $600,000 and Working

question 94

Multiple Choice

Yukon Company has total current liabilities equal to $600,000 and working capital of $30,000. Northwest Company has the same amount of working capital, but it has total current liabilities of $40,000. The company with the better working capital position:

• A)is Northwest Company.
• B)is Yukon Company.
• C)is neither Northwest nor Yukon. They both have exactly the same working capital position.
• D)cannot be determined from the information given.

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Definitions:

Machining Process

A manufacturing process involving the shaping of metal and other materials through cutting, boring, grinding, or drilling.

Assembling Process

The phase in manufacturing where components are put together to form a finished product.

Packaging Process

The operations involved in designing and producing packages for products, aimed at protecting and presenting the product effectively.

Non-value Added Activities

Tasks or processes that do not add any direct value or benefit to the product or service from the perspective of the customer.