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D. If a CEO or CFO of a company fails to comply with the provisions of
the act, he or she is subject to a fine up to $10,000 and one year in jail.
6 Ray is an entrepreneur who has recently started his own venture. Since
he does not have the resources to hire a financial expert, he has to
manage the company’s finance in addition to managing the company. He
needs to calculate the working capital of his business. From the
following information, calculate the net working capital.
Cash $20,000
Accounts receivable 12,000
Accounts payable 14,500
Inventory 32,000
Accrued expenses 6,500
A. $23,000

B. $49,500

C. $11,000
D. $43,000
7 Blanrin Inc. currently produces all the components for the products it
makes and sells. The total costs of producing a component,
Component Y, for one of its products are given below. The annual
requirement of Component Y is 2,200 units.
Direct materials $19,800
Direct labor 11,000
Variable manufacturing overhead 15,400
Fixed manufacturing overhead 13,200
An external supplier offers to sell the component to Blanrin Inc. for $23
per unit. After analysis, it is found that if the company buys the
component instead of producing it, all of its variable costs and $8,200 of