The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?
A) -$12 million
B) $12 million
C) -$24 million
D) $24 million

Question

The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?
A) -$12 million 
B) $12 million 
C) -$24 million 
D) $24 million

Quizplus · Accepted Answer

A) Current assets would fall by $54, with no change in current liabilities. 11eaabab_c0c7_37f6_b90e_4fd4ff4723db_TB5536_11

The Above Diagram Shows a Balance Sheet for a Certain