Question

Strong Look Corporation provided the following information to its accountants. The company had current assets of $145,332, net fixed assets of $356,190, and other assets of $4,176. The firm has long-term debt of $76,445, common stock of $200,000, and retained earnings of $134,461. What amount of current liabilities does this firm have?

Answer 1

Answer:

Explanation:

Given the following :

current assets = $145,332

Net fixed assets = $356,190

Other assets = $4,176

Long-term debt = $76,445

Common stock = $200,000

Retained earnings = $134,461

Current liabilities = ( Total assets - Long-term debt - Total stockholders' equity)

Total assets = (current + net + other) assets

Total assets = $(145,332 + 356,190 + 4, 176) = $505,698

Total Stockholder's equity = ( common stocks + retained earning)

Total stockholders' equity = $200,000 + $134,461 = $334,461

Current liabilities = ( Total assets - Long-term debt - Total stockholders' equity)

Current Liabilities :

($505,698 - $76,445 - $334,461) = $94,792