Answer:
The total of current assets amounts to $147,000
Explanation:
Current assets are those kinds of assets which are converted to cash or into liquid within a year or less. The current assets involve the inventory, cash and cash equivalents, accounts receivable, prepaid expenses and marketable securities.
The total current assets will be computed as:
Current assets = Accounts Receivable + Cash + Inventory + Trading securities + Prepaid expenses
where
Accounts Receivable amounts to $40,000
Inventory amounts to $58,500
Cash amounts to $30,500
Prepaid expense amounts to $5,000
Trading securities amounts to $13,000
Putting the values above:
Current assets = $40,000 + $58,500 + $30,500 + $5,000 + $13,000
Current assets = $147,000
