Based on the Above Data, What Is the Amount of Working

question 4

Multiple Choice

Based on the above data, what is the amount of working capital?

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

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Definitions:

Excludability

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission.

Marginal-cost-marginal-benefit Rule

A principle suggesting that optimal decision making involves continuing an activity until the additional benefits no longer exceed the additional costs.

Cost-benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options that provide the best approach to achieve benefits while preserving savings.