Question

The classified balance sheet for a company reported current assets of $1,753,812, total liabilities of $801,540, common stock of $1,020,000, and retained earnings of $132,260. The current ratio was 2.7.What is the total amount of noncurrent assets?a. $199,988b. $952,272c. $601,552d. $649,560

Answer 1

Answer:

Option (a) is correct.

Explanation:

Total liabilities and shareholders equity:

= total liabilities + common stock + retained earnings

= $801,540 + $1,020,000 + $132,260

= $1,953,800

Current assets = $1,753,812

Non current assets:

= Total liabilities and shareholders equity - Current assets

= $1,953,800 - $1,753,812

= $199,988

Therefore, the total amount of non-current assets is $199,988.