CHAPTERS 1-2 ×yDEXAM 1 CHAPTERS 1-2 x ? ezto.mheducation.com/hm.tpx nnect INANCE
ID: 2393160 • Letter: C
Question
CHAPTERS 1-2 ×yDEXAM 1 CHAPTERS 1-2 x ? ezto.mheducation.com/hm.tpx nnect INANCE CHAPTERS1-2 instructions I help Question 11 (of 20) Save & Exit Submn value 5.00 points MC Qu. 1 Balance Sheet You are evaluating the balance sheet for Cypress.. Belance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the Cash and marketable securities $540,000, Accounts receivable $740,000, Inventory 5440,000, Accrued wages and taxes $44000, Accounts payable What is Cypress's net working capital? $140.000, and Notes payable $940,000 $1720,000 O $596.000 $1124,00o O $2.844000 Multiple Choice MC Qu. 1 Balance Sheet Difficulty 1 Basic You are evaluating the balance sheet for CypressExplanation / Answer
Correct Answer = $ 596000
Explanation
Current Assets
Cash and Marketable Securities
$ 540,000.00
Accounts Receivables
$ 740,000.00
Inventory
$ 440,000.00
Total Current Assets
$ 1,720,000.00
Current Liabilities
Accrued Wages and Taxes
$ 44,000.00
Accounts Payable
$ 140,000.00
Notes Payable
$ 940,000.00
Total Current Liabilities
$ 1,124,000.00
Working Capital =
Current Assets-Current Liabilities
Working Capital =
($ 1720000-$ 1124000)
Working Capital =
$ 596,000.00
Current Assets
Cash and Marketable Securities
$ 540,000.00
Accounts Receivables
$ 740,000.00
Inventory
$ 440,000.00
Total Current Assets
$ 1,720,000.00
Current Liabilities
Accrued Wages and Taxes
$ 44,000.00
Accounts Payable
$ 140,000.00
Notes Payable
$ 940,000.00
Total Current Liabilities
$ 1,124,000.00