What Is the Change in Net Working Capital from 2010

question 15

Multiple Choice

What is the change in net working capital from 2010 to 2011?

• A)-$93
• B)-$7
• C)$7
• D)$85
• E)$97

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Definitions:

Income Statement

A document detailing a firm's income, expenditures, and profit during a certain timeframe.

Operating Leverage

refers to the extent to which a firm utilizes fixed costs in its cost structure, influencing how changes in sales volume affect operating income.

Net Operating Income

This is a company's income after all operating expenses, excluding financial expenses and taxes, have been deducted from total revenue.

Operating Leverage

The degree to which a company's net income can be affected by a change in sales, influenced by the proportion of fixed costs in a company's cost structure.