2A2A BROOMALL CORPORATION HAS DECIDED TO INCLUDE CERTAIN FINANCIAL RA...

21.

CSO: 2A2a

LOS: 2A2a

Broomall Corporation has decided to include certain financial ratios in its year-end

annual report to shareholders. Selected information relating to its most recent fiscal year

is provided below.

• Cash

$10,000

• Accounts receivable

20,000

• Prepaid expenses

8,000

• Inventory

30,000

• Available-for-sale securities

-At cost

9,000

-Fair value at year end

12,000

• Accounts payable

15,000

• Notes payable (due in 90 days)

25,000

• Bonds payable (due in 10 years)

35,000

• Net credit sales for year

220,000

• Cost of goods sold

140,000

Broomall’s working capital at year end is

a.

$40,000.

b.

$37,000.

c.

$28,000.

d.

$10,000.