Use the Table for the Question(s)below

question 7

Multiple Choice

Use the table for the question(s) below.
-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)$48 million
• B)$60 million
• C)$11 million
• D)$50 million

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Definitions:

Useful Life

The period over which an asset is expected to be usable by an entity for its intended purpose.

Valuation Consolidation

The process of combining the financial statements of separate subsidiaries or entities within a group to present as one entity for the purpose of valuation.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing in the production process.