The Charleston Company purchases a machine on 1/1/18: + Cost Salvage Value Estimated Life Depreciation $22,000 $4,000 8 years Straight-Line The book value at 12/31/20 will be: Select one: a. $15,250 O b. $13,750 O c. $17,500 O d. $13,500 O e. $11,250 10 Given the following data: Overstated Understated $5 $4 Sales Returns Beginning Inventory Freight Out $15 Net Income is: Select one: O a. Overstated $24 O b. Overstated $16 O c. Understated $6 O d. Understated $24 O e. Understated $14 23 The Bozeman Company had current assets of $400 and current liabilities of $500 prior to the following transactions: 1. Declaration of a cash dividend, $100 2. Service performed on credit, $80 of The combined effect of these two transactions will cause what effect on Working Capital and the Working Capital Ratio, respectively? Select one: O a. No Effect, Decrease O b. No Effect, Increase O c. Decrease, No Effect O d. Decrease, Decrease O e. Decrease, Increase 24 If a retail store has a current ratio of 1.8 to 1 and current liabilities of $270,000, the amount of working capital is: ut of Select one: O a. $216,000 O b. $120,000 O c. $67,500 O d. $54,000 O e. $486,000