The Financial Statements for Uptown Service Company Include the Following

question 154

Multiple Choice

The financial statements for Uptown Service Company include the following items: $$\begin{array} { | l | r | r | } \hline & { 2019 } & { 2018 } \\\hline \text { Cash } & \$ 50,500 & \$ 47,000 \\\hline \text { Short-term Investments } & 27,000 & 18,000 \\\hline \text { Net Accounts Receivable } & 61,000 & 51,000 \\\hline \text { Merchandise Inventory } & 161,000 & 46,000 \\\hline \text { Total Assets } & 535,000 & 548,000 \\\hline \text { Accounts Payable } & 127,500 & 129,000 \\\hline \text { Salaries Payable } & 16,000 & 16,000 \\\hline \text { Long-term Note Payable } & 60,000 & 57,000 \\\hline\end{array}$$ Compute working capital for 2019.

• A) $145,000
• B) $96,000
• C) $156,000
• D) $33,000

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Definitions:

Longer Maturities

Refers to bonds or other fixed-income securities that have a longer time until the final repayment date.

Pure Yield Pickup Swap

A strategy where an investor swaps out of one bond into another with the aim of achieving a higher yield.

Price Risk

The possibility that the value of a financial instrument or asset will fluctuate due to changes in market prices, affecting investors' returns.

Reinvestment Rate Risk

The risk that income from an investment will be reinvested at a lower rate than the original investment.