NNR Inc'S Balance Sheet Showed Total Current Assets of $1, 875

question 51

Multiple Choice

NNR Inc.'s balance sheet showed total current assets of $1, 875, 000 plus $4, 225, 000 of net fixed assets.All of these assets were required in operations.The firm's current liabilities consisted of $475, 000 of accounts payable, $375, 000 of 6% short-term notes payable to the bank, and $150, 000 of accrued wages and taxes.Its remaining capital consisted of long-term debt and common equity.What was NNR's total investor-provided operating capital?

• A) $4, 694, 128
• B) $4, 941, 188
• C) $5, 201, 250
• D) $5, 475, 000
• E) $5, 748, 750

---

Definitions:

Linear Relationship

A direct proportionality between two variables in which the change in one variable is directly proportional to the change in another, represented graphically as a straight line.

Relationship

A connection, association, or interaction between two or more variables, where changes in one variable affect the other(s).

Independent Variables

Refers to the inputs or predictors in a statistical model that are manipulated or selected by the researcher to determine their effect on the dependent variable.

COV

A measure of relative variability computed as the standard deviation divided by the mean; also known as the coefficient of variation.