Universal Financial, Inc. has total current assets of 1,200,000; long-term debt of 600,000; total
current liabilities of 500,000; and long-term assets of 800,000. How much is the firm's net
working capital?
A) 900,000 B) 600,000 C) 700,000 D) 1,000,000
Question 2
Polly purchased a Homeowners 3 policy. She has a swing set in the backyard of her home.
While her son and the neighbor's child were using the swing set, it collapsed. Both of the children required medical care. Which of the following statements is true?
A) The medical expenses Polly's son are covered under the policy.
B) The medical expenses of the neighbor's child are covered under the policy.
C) If Polly's son sues Polly and wins, the insurer will pay the damage award.
D) If the neighbor sues Polly, Polly must pay for the lawyer who defends the suit.
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