Question

The Corner Store currently has $3,600 in cash. The company owes $31,800 to suppliers for merchandise and $21,500 to the bank for a long-term loan. Customers owe The Corner Store $19,000 for their purchases. The inventory has a book value of $53,300 and an estimated market value of $71,200. If the store compiled a balance sheet as of today, what would be the book value of the current assets? A. $46,800 B. $55,600 C. $64,700 D. $75,900 E. $96,500

Answer 1

Answer:

The answer is "Option D".

Explanation:

The formula for current assets:

$\text{current assets= cash + receivables + inventory}$

                      $= 3600 + 19,000+53,300\\\\= 75900$