Asked by
Natalie Beres
on Oct 09, 2024Verified
Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000.The company's working capital is:
A) $615,000
B) $1,183,000
C) $385,000
D) $958,000
Stockholders' Equity
The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of shareholders.
Net Plant
The net book value of a company’s plant assets, typically representing the total cost of these assets minus accumulated depreciation.
Working Capital
The difference between a company's current assets and current liabilities, indicating the liquidity available for daily operations.
- Comprehend the calculation and significance of working capital and how it reflects a company's short-term financial health.
Verified Answer
JM
Learning Objectives
- Comprehend the calculation and significance of working capital and how it reflects a company's short-term financial health.