Use the Information Below for Privett Company to Answer the Questions

question 99

Multiple Choice

Use the information below for Privett Company to answer the questions that follow.
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$$\begin{array}{l}\text { Privett Company }\\\begin{array} { l r } \text { Accounts payable } & \$ 30,000 \\\text { Accounts receivable } & 35,000 \\\text { Accrued liabilities } & 7,000 \\\text { Cash } & 25,000 \\\text { Intangible assets } & 40,000 \\\text { Inventory } & 72,000 \\\text { Long-term investments } & 100,000 \\\text { Long-term liabilities } & 75,000 \\\text { Marketable securities } & 36,000 \\\text { Notes payable (short-term) } & 20,000 \\\text { Property, plant, and equipment } & 400,000 \\\text { Prepaid expenses } & 2,000\end{array}\end{array}$$
-Based on the data for Privett Company, what is the amount of working capital?

• A) $213,000
• B) $113,000
• C) $153,000
• D) $39,000

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Definitions:

Express Contract

An express contract is a legally binding agreement where the terms are explicitly stated by the parties involved either orally or in writing.

Implied Contract

An agreement created by actions of the parties involved, rather than written or spoken words, which has the same legal force as a written contract.

Executed Contract

A contract in which all parties involved have fulfilled their obligations as outlined in the agreement.

Executory Contract

A contract that has not yet been fully performed.