The following information pertains to Timberlake Company: $\begin{array}{llll}
\text { Current assets } & \$ 200,000 & \text { Current liabilities } & \$ 50,000 \
\text { Property, plant and } & &\
\text { equipment } &400,000 & \text { Long-term liabilities } & 250,000 \
\text { Construction in progress } & 50,000 & \text { Stockholders' equity } & 350,000\
\text { Total assets }&\$650,000&\text { Total assets }&\$650,000
\end{array}$ Invested capital is _____ if it is defined as total assets less current liabilities.
A)$650,000
B)$600,000
C)$550,000
D)$350,000

Question

Quizplus · Accepted Answer

Invested capital is calculated as total assets ($650,000) minus current liabilities ($50,000), which equals $600,000.

The Following Information Pertains to Timberlake Company Invested Capital Is _____ If It Is Defined as Total