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Table 152 the Company Earns 5 Percent on Current Assets

Question 144

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Table 15.2 Table 15.2   The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent. -The firm's initial net working capital is ________. (See Table 15.2)  A)  $15,000 B)  $13,000 C)  $5,000 D)  $10,000 The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent.
-The firm's initial net working capital is ________. (See Table 15.2)


A) $15,000
B) $13,000
C) $5,000
D) $10,000

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