Question

Other financial data for the year ended December 31, 2019: Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2021. The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability. During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. In Lamberts December 31, 2019 balance sheet, the current assets total is

Answer 1

Answer:

$5,055,000

Explanation:

Note: The full question is attached below

Particulars                                                                    Amount

Cash                                                                            $875,000

Accounts receivable                          $2,695,000  

Less: Installments not due in 2021   ($600,000)      $2,095,000

[$1,200,000 - ($150,000 * 4)]  

Inventory                                                                      $2,085,000

Total of current assets                                               $5,055,000