Current Assets of NorthPole

question 42

Multiple Choice

Current assets of NorthPole.com at the end of each quarter were: 1st quarter $1.3 million, 2nd quarter $1.7 million, 3rd quarter $1.5 million and 4th quarter $2.2 million. The best estimate for North Pole's permanent current assets is

• A) $2.2 million.
• B) $1.675 million.
• C) $1.3 million.
• D) $0.9 million.

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, representing its short-term financial health and efficiency.

Operating Income

The profit realized from a company's core business operations, excluding deductions of interest and tax.

Projected Sales

Estimated revenue figures based on market analysis and sales patterns, used for business planning and forecasting.