Use the Table for the Question(s)below

question 18

Multiple Choice

Use the table for the question(s) below.
-The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?

• A)-$5 million
• B)-$15 million
• C)$15 million
• D)$60 million

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Definitions:

Income

Money received, especially on a regular basis, for work or through investments.

Expenses

Costs that a business incurs through its operations to generate revenue, including costs of goods sold, rent, utilities, and salaries.

Profit & Loss Statement

A financial report that summarizes the revenues, costs, and expenses incurred during a specific period, typically used to assess a company's financial performance.

Income

The financial gain received by an individual or a business, often obtained from a job, business operations, or investments.