3 (#2) When balance sheets are analyzed, working capital always receives close attention. 2900 debts, take advantage of cash discounts, and extend favorable terms to customers. A com- Adequate working capital enables a company to carry sufficient inventories, meet current pany that is deficient in working capital and unable to do these things is in a poor competitive position. tion. Below is a Trial Balance as of June 30, 2017, in alphabetical order, of the Worth Corpora- CREDITS DEBITS $ 50,000 Accounts Payable Accounts Receivable $ 40,000 10,000 lanca Accrued Expenses Payable 10,000 Spina Capital Stock 20,000 Cash 5,000 Depreciation Expense 60,000 Inventory 30,000 Plant & Equipment (net) Retained Earnings 20,000 s Salary Expense 35,000 100,000 Sales $190,000 $190,000 11. The Worth Corporation's Working Capital, based on the data above, is A. $50,000 B. $55,000 C. $60,000 12. Which one of the following transactions increases Working Capital? A. Collecting outstanding accounts receivable 11. D. $65,000 12. B. Borrowing money from the bank based upon a 90-day interest-bearing note pay- able C. Paying off a 60-day note payable to the bank D. Selling merchandise at a profit The Worth Corporation's Current Ratio, based on the data above, is A. 1.7 to 1 B. 2 to 1 C. 2.5 to 1 13 D. 4 to 3 14. Which one of the following transactions decreases the Current Ratio? A. Collecting an accounts receivable B. Borrowing money from the bank giving a 90-day interest-bearing note payable C. Paying off a 60-day note payable to the bank D. Selling merchandise at a profit wolad