A Company with Working Capital of $720,000 and a Current

question 64

Multiple Choice

A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is

• A) $845,000
• B) $595,000
• C) $720,000
• D) $125,000

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Definitions:

Complementary Medicine

A group of diverse medical and health care systems, practices, and products that are not currently considered part of conventional medicine and are used in addition to conventional techniques.

Analgesic Drugs

Drugs that decrease the perception of pain.

Massage

A therapeutic technique involving the manipulation of the body's muscles and tissues to relieve stress, pain, and tension.

Alternative Medical Systems

Health care practices and products not traditionally recognized by mainstream medicine, such as acupuncture and homeopathy.