Reference no: EM132482290

Question 1. If a retail store has a current ratio of 2.2 to 1 and current assets of $330,000, the amount of working capital is:

Select one:

a. $110,000

b. $180,000

c. $220,000

d. $108,000

e. $150,000

Question 2. The Bozeman Company had current assets of $500 and current liabilities of $400 prior to the following transactions:

1. Collection of an account receivable, $100

2. Payment of an account payable, $80

The combined effect of these two transactions will cause what effect on Working Capital and the Working Capital Ratio, respectively?

Select one:

a. No Effect, Decrease

b. No Effect, Increase

c. No Effect, No Effect

d. Decrease, Decrease

e. Decrease, Incre