Question

The balance sheet shows the following accounts and amounts Inventory. $84,000, Long-term Debt 125.000; Common Stock $60,000; Accounts Payable $44,000; Cash $132,000, Buildings and Equipment $390,000: Short-term Debt $48.000: Accounts Receivable $109,000, Retained Earnings $204,000 Notes Payable $54.000: Accumulated Depreciation $180.000 Total current assets on the balance sheet are: O a. $216.000b. $325..000c. 535.000d. $25.000

Answer 1

Answer:

b. $325,000

Explanation:

The current assets are the assets that are likely to be converted to cash within 12 months. These include cash, inventory, receivables, prepaid expenses etc.

Given;

Inventory = $84,000,

Long-term Debt = $125.000;

Common Stock $60,000;

Accounts Payable $44,000;

Cash $132,000,

Buildings and Equipment $390,000:

Short-term Debt $48.000:

Accounts Receivable $109,000,

Retained Earnings $204,000 Notes Payable $54.000:

Accumulated Depreciation $180.000

Total current asset = $84,000 + $132,000 + $109,000

= $325,000