Question

The following information is provided for a company. Accounts payable $ 15,000 Buildings 80,000 Cash 10,500 Accounts receivable 9,500 Salaries payable 4,500 Retained earnings 47,500 Supplies 40,000 Notes payable (due in 18 months) 35,000 Interest payable 3,000 Common stock 35,000 What is the amount of current assets? assuming the accounts above reflect normal activity

Answer 1

Answer:

$60,000

Explanation:

Given that,

Accounts payable = $15,000

Buildings = 80,000

Cash = 10,500

Accounts receivable = 9,500

Salaries payable = 4,500

Retained earnings = 47,500

Supplies = 40,000

Notes payable (due in 18 months) = 35,000

Interest payable = 3,000

Common stock = 35,000

Amount of current assets:

= Cash + Accounts receivable + Supplies

= $10,500 + $9,500 + $40,000

= $60,000

Therefore, the amount of current assets is $60,000.