A Company with Working Capital of $720,000 and a Current

question 64

Multiple Choice

A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is

• A) $845,000
• B) $595,000
• C) $720,000
• D) $125,000

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Definitions:

Norming State

A stage in team development where members resolve conflicts, increase cohesiveness, and collaborate more effectively.

Team Development

The process of enhancing the effectiveness, creativity, and efficiency of teams through various stages of growth, including forming, storming, norming, performing, and adjourning.

Preliminary Sense

An initial understanding or intuition about a situation, often formed before having all the information or details.

Performance Advantages

Benefits or superior outcomes achieved by individuals, teams, or organizations that effectively utilize their resources, talents, and strategies.