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Selected information from a company's balance sheet follows: Long-term debt $ 140 Retained earnings 130 Current assets 275 Property, plant, and equipment 160 Common stock

  1. Selected information from a company's balance sheet follows:

Long-term debt $ 140

Retained earnings 130

Current assets 275

Property, plant, and equipment 160

Common stock 530

Current liabilities 75

Working capital is

a. $250

b. $230

c. $220

d. $200

  1. Information about a company's operating capability may be helpful to external users in
    1. assessing the uncertainty of its future cash flows.
    2. evaluating the timing of cash flows in the near future.
    3. evaluating the efficiency with which the company uses its resources to generate revenue.
    4. assessing a return of investment as well as a return on investment

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