Question
In: Accounting
Based on the following data, what is the amount of current assets? Accounts payable $63500 Accounts...
Based on the following data, what is the amount of current
assets?
| Accounts payable | $63500 |
| Accounts receivable | 97500 |
| Cash | 66000 |
| Intangible assets | 97500 |
| Inventory | 132500 |
| Long-term investments | 160000 |
| Long-term liabilities | 210500 |
| Short-term investments | 77500 |
| Notes payable | 56500 |
| Property, plant, and equipment | 132000 |
| Prepaid insurance | 1900 |
$242900
$375400
$217400
$241000
Solutions
Expert Solution
First of all, let us define what is meant by current aseets. Current assets are the assets of the company that are expected to be conveniently sold, consumed, used or exhausted through normal business operations with in one year. Some of the examples of current aseets are cash, cash equivalents inevntoru, prepaid expense, accounts receivables etc. So in simple words it can be defined as the assets which can be easily convertible to Cash within an year.
In the above questions,
Current assets include,
Accounts receivable. = $ 97,500
Cash. = $ 66,000
Inventory. = $ 132,500
Short term investment = $ 77,500
Prepaid insurance. = $ 1,900
Total. = $ 375,400
Hence, option B is the correct answer.
SUMMARY :
Accounts payable, long term liabilities and notes payable are coming under the liability side of balance sheet and doesn't belong to current assets. Long term investments are the assets of the company which is expected to gain more than one year and doesn't come under current assets. Plant, property and equipment and intangible assets are the fixed assets of the company and doesn't belong to current assets.
Total current assets amounts to $ 375,400.
Hence, option B is the correct answer.
ekkarill92 answered 1 year agoRelated Solutions
Based on the following data, what is working capital? Accounts payable Accounts receivable Accrued liabilities Cash...
Based on the following data, what is working capital? $$ \begin{array}{lr} \text { Accounts payable } & \$ 30,000 \\ \text { Accounts receivable } & 60,000 \\ \text { Accrued liabilities } & 4,000 \\ \text { Cash } & 60,000 \\ \text { Intangible assets } & 50,000 \\ \text { Inventory } & 69,000 \\ \text { Long-term investments } & 80,000 \\ \text { Long-term liabilities } & 100,000 \\ \text { Marketable securities } & 50,000...
Current assets Current liabilities Cash $72,000 Accounts payable $12,000 Accounts receivable 18,000 Interest payable 12,000 Interest...
Current assets
Current liabilities
Cash
$72,000
Accounts payable
$12,000
Accounts receivable
18,000
Interest payable
12,000
Interest receivable
1,000
Inventory
60,000
Total current assets
$151,000
Total current liabilities
$24,000
Long-term assets
Long-term liabilities
Equipment (net of depreciation)
$128,000
Note payable
100,000
Total long-term assets
$128,000
Total long-term liabilities
$100,000
Equity
Common stock
10,000
Paid-in capital
50,000
Retained earnings
95,000
Total equity
$155,000
Total assets
279,000
Total liabilities and equity
$279,000
Yes the difference between account payable and accounts
receivable is required....
Winston & Company, Inc Balance Sheet Assets: Liabilities: Current Assets $995,000 Accounts Payable $300,000 Notes Payable...
Winston & Company, Inc Balance Sheet Assets: Liabilities:
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$700,000 Fixed Assets $3,000,000 Other Current Liabilities $195,000
Bonds Payable $1,200,000 Total Liabilities $2,395,000 Equity
$1,600,000 Total Assets: $3,995,000 $3,995,000
Current Market Information: 700 Bonds - $1,000 20 years, 10 %
stated rate, issued 8 years ago – currently selling at .97 500
Bonds - $1,000, 10 years, 15% stated rate, issued 3 years ago –
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Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet: Current
assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000
Notes payable 750,000 Subordinated debentures 750,000 Total debt
$1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total
liabilities and equity $3,750,000 The trustee's costs total
$238,250, and the firm has no accrued taxes or wages. Southwestern
has no unfunded pension liabilities. The debentures are
subordinated only to the notes payable. If the firm goes bankrupt
and liquidates, how much will each class of investors...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet:
Current assets
$1,875,000
Accounts payable
$375,000
Fixed assets
1,875,000
Notes payable
750,000
Subordinated debentures
750,000
Total debt
$1,875,000
Common equity
1,875,000
Total assets
$3,750,000
Total liabilities and equity
$3,750,000
The trustee's costs total $263,750, and the firm has no accrued
taxes or wages. Southwestern has no unfunded pension liabilities.
The debentures are subordinated only to the notes payable. If the
firm goes bankrupt and liquidates, how much will each class of
investors...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet:
Current assets
$1,875,000
Accounts payable
$375,000
Fixed assets
1,875,000
Notes payable
750,000
Subordinated debentures
750,000
Total debt
$1,875,000
Common
equity 1,875,000
Total assets
$3,750,000
Total liabilities and equity
$3,750,000
The trustee's costs total $323,750, and the firm has no accrued
taxes or wages. Southwestern has no unfunded pension liabilities.
The debentures are subordinated only to the notes payable. If the
firm goes bankrupt and liquidates, how much will each class of
investors receive...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet:
Current assets
$1,875,000
Accounts payable
$375,000
Fixed assets
1,875,000
Notes payable
750,000
Subordinated debentures
750,000
Total debt
$1,875,000
Common equity
1,875,000
Total assets
$3,750,000
Total liabilities and equity
$3,750,000
The trustee's costs total $248,500, and the firm has no accrued
taxes or wages. Southwestern has no unfunded pension liabilities.
The debentures are subordinated only to the notes payable. If the
firm goes bankrupt and liquidates, how much will each class of
investors...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet:
Current assets
$1,875,000
Accounts payable
$375,000
Fixed assets
1,875,000
Notes payable
750,000
Subordinated debentures
750,000
Total debt
$1,875,000
Common equity
1,875,000
Total assets
$3,750,000
Total liabilities and equity
$3,750,000
The trustee's costs total $228,000, and the firm has no accrued
taxes or wages. Southwestern has no unfunded pension liabilities.
The debentures are subordinated only to the notes payable. If the
firm goes bankrupt and liquidates, how much will each class of
investors...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet:
Current assets
$1,875,000
Accounts payable
$375,000
Fixed assets
1,875,000
Notes payable
750,000
Subordinated debentures
750,000
Total debt
$1,875,000
Common equity
1,875,000
Total assets
$3,750,000
Total liabilities and equity
$3,750,000
The trustee's costs total $323,500, and the firm has no accrued
taxes or wages. Southwestern has no unfunded pension liabilities.
The debentures are subordinated only to the notes payable. If the
firm goes bankrupt and liquidates, how much will each class of
investors...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $ 375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet:
Current assets
$1,875,000
Accounts payable
$ 375,000
Fixed assets
1,875,000
Notes payable
750,000
Subordinated debentures
750,000
Total debt
$1,875,000
Common equity
1,875,000
Total assets
$3,750,000
Total liabilities and equity
$3,750,000
The trustee's costs total $290,500, and the firm has no accrued
taxes or wages. Southwestern has no unfunded pension liabilities.
The debentures are subordinated only to the notes payable. If the
firm goes bankrupt and liquidates, how much will each class of
investors...
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