Balance Sheet Net Property, Plant

question 58

Multiple Choice

Balance Sheet Net property, plant,
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) -$12 million
• B) $12 million
• C) -$24 million
• D) $24 million

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Definitions:

Income Inequality

A measure that highlights the uneven distribution of individual or household income across a population, leading to economic disparity.

Government Transfers

Payments made by the government to individuals or other entities without requiring a direct return of goods or services, such as welfare or subsidies.

Income Distribution

The way in which total income is shared among individuals or households within an economy.

Noncash Transfers

Types of government assistance such as food stamps and housing vouchers that provide benefits other than direct cash payments.