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:

Unlimited Liability

The liability of the sole proprietor or the partners for all debts incurred by the business to the extent of their personal resources.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Incorporated

A legal process whereby a business entity is formed as a distinct legal entity, separate from its owners, with its own rights and liabilities.

Principal

The main party to a transaction or contract who has a primary interest and authority in the context considered.