Bevco Company Has Provided the Following Information from Its Accounting

question 31

Multiple Choice

Bevco Company has provided the following information from its accounting records for the current year:
$\begin{array}{lrlr}\text { Cash } & \$ 55,000 & \text { Accounts receivable } & \$ 45,000 \\\text { Inventory } & 65,000 & \text { Land } & 75,000 \\\text { Accounts payable } & 50,000 & \text { Notes payable (due 2021) } & 150,000 \\\text { Retained earnings } & ? & \text { Capital stock } & 20,000\end{array}$
-Read the information for Bevco Company.What are Bevco' current assets?

• A)$100,000
• B)$165,000
• C)$210,000
• D)$240,000

---

Definitions:

After-Tax Cost Of Debt

The net cost to a company for borrowing funds, calculated by subtracting the tax savings from the cost of debt's interest payments.

Corporate Tax Rate

The tax imposed on the net income of a corporation, with the rate varying by country and sometimes also by the level of income earned.

Capital Component

One of the elements of a company's capital structure, such as equity or debt, which represents sources of financing.

Underlying Security

A stock, bond, commodity, or other asset upon which options and other derivatives are based or derived.