Question

The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.Assets Liabilities and EquityCurrent assets: Current liabilities:Cash $ 60 Accounts payable $ 240Accounts receivable (net) 170 Other liabilities 80Notes receivable 50 Total current liabilities 320Inventories 200 Long-term liabilities 110Prepaid expenses 25 Total liabilities 430Total current assets 505 Shareholders' equity:Plant assets (net) 255 Capital stock 150Retained earnings 180Total shareholders' equity 330Total assets $ 760 Total liabilities and equity $ 760Quick assets total:(A) $280 thousand. Correct
(B) $60 thousand.
(C) $230 thousand.
`(D) $305 thousand.

Answer 1

Answer:

Total current assets = $60 + $170 + $50+ $200+ 25 =  $505

Quick assets = Total current assets - Inventory

Quick assets = $505 - $200  = $305

The correct answer is D

Explanation:

Total current asset is the aggregate of cash, accounts receivable, notes receivable, inventory and prepaid expenses.

Quick asset is the difference between total current assets and inventory,