A company with working capital of $940,000 and a current ratio of 2 pays a $144,000 short-term liability. The amount of working capital immediately after payment is Oa. $796,000 Ob. $1,084,000 Oc. $940,000 Od. $144,000

A company with working capital of $940,000 and a current ratio of 2 pays a $144,000 short-term liability. The amount of working capital immediately after payment is Oa. $796,000 Ob. $1,084,000 Oc. $940,000 Od. $144,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company with working capital of $940,000 and a current ratio of 2 pays a $144,000 short-term liability. The amount of working capital immediately after payment is
Oa.
a. $796,000
Ob. $1,084,000
Oc. $940,000
Od. $144,000

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