NICO Corporation had net current assets of $2,000,000 at the end of 2006 and $1,800,000 at the end of 2005. In addition, NICO had net spontaneous current liabilities of $1,000,000 in 2006 and $1,500,000 in 2005. Using this information, NICO’s net current asset investment for 2006 was
A. $700,000.
B. –$300,000.
C. $300,000.
D. –$700,000.
Answer:B
NICO Corporation had net current assets of $2,000,000 at the end of 2006 and $1,800,000 at the end of 2005. In addition, NICO had net spontaneous current liabilities of $1,000,000 in 2006 and $1,500,000 in 2005. Using this information, NICO’s net current asset investment for 2006 was
A. $700,000. B. –$300,000. C. $300,000. D. –$700,000.