Question

Kat Outfitting currently has $22,500 in cash. The company owes $49,500 to suppliers for merchandise and $52,500 to the bank for a long-term loan. Customers owe the company $41,000 for their purchases. The inventory has a book value of $76,800 and an estimated market value of $72,000. If the store compiled a balance sheet as of today, what would be the book value of the current assets?

Answer 1

Answer:

The book value of the current assets is $140,300

Explanation:

Cash = $22,500

Amount owed by company = $49,500

Amount Owed by Customers = $41,000

Book Value of Inventory  = $76,800

Estimated market value = $72,000

Book Value of Current Assets = Cash + Amount Owed by Customers + Book Value of Inventory

Book Value of Current Assets = $22,500 + $41,000 + $76,800

Book Value of Current Assets = $140,300