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A Company Reported the Following Account Balances on the Balance

question 56

Multiple Choice

A company reported the following account balances on the balance sheets for year 1 and year 2 (in 000's) :  Current Assets  Year 1  Year 2  Current Liabilies  Year 1  Year 2  Cash $60$120 Accounts payable $60$100 Accounts receivable 8080 Wages payable 4040 Prepaid ins urance 400 Interest payable 3020 Inventory 2076 Notes payable 1080\begin{array} { | l | l | l | l | l | l | } \hline \text { Current Assets } & \text { Year 1 } & \text { Year 2 } & \text { Current Liabilies } & \text { Year 1 } & \text { Year 2 } \\\hline \text { Cash } & \$ 60 & \$ 120 & \text { Accounts payable } & \$ 60 & \$ 100 \\\hline \text { Accounts receivable } & 80 & 80 & \text { Wages payable } & 40 & 40 \\\hline \text { Prepaid ins urance } & 40 & - 0 - & \text { Interest payable } & 30 & 20 \\\hline \text { Inventory } & 20 & 76 & \text { Notes payable } & 10 & 80 \\\hline\end{array} The increase or decrease in working capital for year 2 is (in 000's) :

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Definitions:

Fragments

Small parts or pieces that have broken off from a whole, often resulting from decay, damage, or destruction.

Heimlich Maneuver

An emergency technique used to expel an object from the airway of a person who is choking.

Choking

The obstruction of the upper airway by food or other objects, which can block airflow and cause a serious emergency.

Cardiopulmonary Resuscitation

An emergency procedure combining chest compressions with artificial ventilation in an effort to manually preserve brain function until further measures are taken to restore spontaneous blood circulation and breathing in a person in cardiac arrest.

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