Question

Tumbling Haven, a gymnastic equipment manufacturer, provided the following information to its accountant. The company had net fixed assets of $356,190, and other assets of $4,176. The firm has current liabilities of $94,792, long-term debt of $76,445, common stock of $200,000, and retained earnings of $134,461. What amount of current assets did this firm have?

Answer 1

Answer: 145332

Explanation:

Current assets are the assets that a company has wgich are expected to either be sold or used during the next year and they iinclude cash, stock inventory, accounts receivable, marketable securities, cash equivalents, pre-paid liabilities, etc

It should be noted that:

Total asset = Current asset + $356190 + $4176

= Current asset + $360366

Long term debt + equity = 76445 + 200000 + 134461

= $410906

Current liabilities = $94,792

Since current liabilities= Total asset - (long term debt + equity)

$94,792 = (Current asset + $360366) - $410,906

Current asset = $94792 + $410906 - $360366

= $505698 - $360366

= $145,332