Mcrae Corporation's Total Current Assets Are $380,000, Its Noncurrent Assets

question 266

Multiple Choice

Mcrae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

• A)$380,000
• B)$40,000
• C)$250,000
• D)$290,000

---

Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price.

Equilibrium Price

The market price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Equilibrium Quantity

The level of goods or services being both offered and requested at the market's equilibrium price.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, clearing the market.