A company has $530 in inventory, $180 in accounts receivable, $1,880 in fixed as

Question

A company has $530 in inventory, $180 in accounts receivable, $1,880 in fixed assets, $80 in cash and $300 in accounts payable. What is the amount of current assets?

Select one:

a. $710

b. $790

c. $950

d. $2,370

e. $2,670

Which of the following is true if there is an increase in depreciation expense?
I. Increase net income
II. Decrease net income
III. Increase the cash flow from assets
IV. Decrease the cash flow from assets

Select one:

a. I only

b. II only

c. I and III only

d. II and III only

e. II and IV only

When the company began the year, current assets were $125,063 and current liabilities were $128,532. When the company ended the year, the current assets were $126,162 and current liabilities were $121,562. What was the change in the company’s net working capital?

Select one:

a. $2,126

b. - $3,562

c. $8,069

d. $6,256

e. - $5,626

Explanation / Answer

What is the amount of current assets? - Answer:b.$790

inventory + accounts receivable + cash = 530 + 180 + 80 = 790

Which of the following is true if there is an increase in depreciation expense?

b. II only

What was the change in the company’s net working capital? - Answer:c. $8,069

Beginning Working Capital = current assets - current liabilities = 125063 - 128532 = -3469

Ending Working Capital = current assets - current liabilities = 126162 - 121562 = 4600

Change in Net working Capital = 4600 - ( -3469 ) = 8069

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