In: Finance
Tumbling Haven, a gymnastic equipment manufacturer, provided the following information to its accountant. The company had net fixed assets of $356,190, and other assets of $4,176. The firm has current liabilities of $94,792, long-term debt of $76,445, common stock of $200,000, and retained earnings of $134,461. What amount of current assets did this firm have?
Balance Sheet has two side-one Assets Side and other is Liabilities and Equity. | ||||
Total of both side is always equal. | ||||
Total Assets | = | Total Liabilities | + | Total Equity |
Step-1:Calculation of total liabilities and Total Equity | ||||
Current Liabilities | $ 94,792 | |||
Long term debt | $ 76,445 | |||
Total Liabilities | $ 1,71,237 | |||
Common Stock | $ 2,00,000 | |||
Retained Earning | $ 1,34,461 | |||
Total Equity | $ 3,34,461 | |||
Total Liabilities and Equity | $ 5,05,698 | |||
Step-2:Calculation of Current Assets | ||||
Total Liabilities and Equity | $ 5,05,698 | |||
Net Fixed Assets | $ 3,56,190 | |||
Other assets | $ 4,176 | |||
Total assets other than current assets | $ 3,60,366 | |||
Current Assets | $ 1,45,332 |