Finance - Quiz 2

Pete's Warehouse has net working capital of $2,400, total assets of $19,300, and net fixed assets of $10,200. What is the value of the current liabilities?

$6,700

Baugh and Essary reports the following account balances: inventory of $17,600, equipment of $128,300, accounts payable of $24,700, cash of $11,900, and accounts receivable of $31,900. What is the amount of the current assets?

$61,400

Which one of the following is included in net working capital?

Accounts payable

an increase in which one of the following will increase operating cash flow for a profitable, tax-paying firm?

Depreciation

An increase in which one of the following will increase net income?

Revenue

the financial statement that summarizes a firm's accounting value as of a particular date is called the:

balance sheet

Net working capital is defined as:

current assets minus current liabilities

Over the past year, a firm decreased its current assets and increases its current liabilities. As a result, the firm's net working capital:

had to decrease

the accounting statement that measures the revenues, expenses, and net income of a firm over a period of time is called the:

income statement

Operating cash flow is defined as:

the cash that a firm generates from its normal business activities