West Company had $375,000 of current assets and $150,000 of - 14095

Solution Posted by
yousafbhutta

yousafbhutta

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Solution Detail
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  • From: Business,
  • Posted on: Thu 20 Sep, 2012
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Request Description

West Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $75,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of West Company's working capital?

  • No effect
  • $75,000 increase
  • $150,000 increase
  • $75,000 decrease
Solution Description

West Company had $375,000 of current assets and $150,000 of current liabilit