Finance Objective Questions - Finding out Net Working Capital and Common-size Income Statements and Balance Sheets

Question

1. A firm has current assets of $36,000, cash of $5,000, current liabilities of $20,000, total assets of $80,000 and total liabilities of $45,000, what is its net working capital? 

1. $16,000
2. $28,000
3. $35,000 
4. $44,000

2. Common-size income statements and balance sheets are created using which common base items (respectively)? 

1. Sales and total assets
2. Sales and total liabilities
3. Operating income and total assets
4. Net income and total equity

Summary

These two objective questions belong to Finance. The first question deals with finding out net working capital and the second question is about the common base items used for preparing common-sized income statement and balance sheets.

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