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Pinecrest Company
Use the Selected Data from Pinecrest Company's Financial

question 53

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.

20182017 Cash $22,000$14,000 Accounts receivable 42,00016,000 Merchandise inventory 22,00083,000 Prepaid expenses 23,00018,000 Total current assets $109,000$131,000 Total current liabilities $65,000$72,000 Net credit sales 221,000326,000 Cost of goods sold 168,000299,000 Net cash flow from operating activities 16,00029,000\begin{array}{lrr}&2018&2017\\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses } & 23,000 & 18,000 \\\text { Total current assets } & \$ 109,000 & \$ 131,000\\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}
-Refer to the data for Pinecrest Company.
The amount of working capital at the end of 2018 is


Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Utility

The total satisfaction or value derived from consuming goods or services, often considered in economic decisions and analyses.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Training Program

A structured plan designed to increase the knowledge, skills, and capabilities of individuals or groups.

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