Question

Use the following data to determine the total dollar amount of assets to be classified as current assets. Wildhorse Co. Balance Sheet December 31, 2022
Cash $200000
Accounts payable $195000
Accounts receivable 155000
Salaries and wages payable 32000
Inventory 160000
Mortgage payable 241500
Prepaid insurance 88500
Total liabilities $468500
Stock investments (long-term) 255000
Land 262000
Buildings $303000
Common stock $364000
Less: Accumulated depreciation (63500) 239500
Retained earnings 738500
Goodwill 211000
Total stockholders' equity $1102500
Total assets $1571000
Total liabilities and stockholders' equity $1571000

Answer 1

Answer:

$603,500

Explanation:

Calculation to determine the total dollar amount classified as current assets.

Using this formula

Current asset=(Cash + Account receivable + Inventory + Prepaid insurance)

Let plug in the formula

Current assets=$200,000+$155,000+$160,000+$88,500

Current assets=$603,500

Therefore the total dollar amount classified as current assets is $603,500