Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Bracewell Corporation’s current ratio is 2.5:1. The company’s current liabilities total $200,000.
-If Bracewell buys equipment for $100,000 cash, working capital immediately after this transaction is

A) $100,000.
B) $200,000.
C) $300,000.
D) $400,000.
E) $500,000.