Question

1. A thorough review of GE Broadcasting assets at the end of December 31, 20X5, resulted in the following information:

■ Cash on hand and cash at bank totaling $484,000

■ Fixed-term deposits with banks totaling $142,000 (matures July 1, 20X7)

■ Inventories totaling $324,000

■ Trade receivables totaling $245,000

■ Loans to employees of $120,000, 30% of which is due by the end of 20X6

■ PPE with a historical cost of $129,000 and accumulated depreciation of $12,000

■ Investment in associate companies using equity method at $35,000

■ Short-term investment in publicly traded shares of listed companies at $10,000

Question 1: What are GE Broadcasting's current and non-current assets?

2. GE Broadcasting's liabilities at the end of December 31, 20X5:

■ Trade payable of $317,000

■ Note payable of $245,000 due July 1, 20X7

■ Interest accrued for note payable $8,000 (payable every quarter, the next payment being

on April 1, 20X6)

■ Provisions for unbilled expenses of $40,000

■ Provision for employee benefit of $248,000 (first employee retirement expected in 20X9)

■ Interest-free loan from a shareholder, totaling $400,000, payable in eight equal quarterly

installments, first payment due on March 1, 20X6.

Question 2: What are GE Broadcasting's current and non-current liabilities?

Dear teaches

would you take time help me classify the right items and catogary them for me reference.

Regarding the Question1 my concern is on "Loans to Employee 120K 30% due by end of 20X6".

Regarding the Question 2 is provisions for unbilled expenseds of 40K, this belong to current right?

Looking forward to your answers and thanks so much.

Thanks

Answer 1

Question 1)

Current assets:-

Cash in hand and bank $484000

Inventories totalling $324000

Trade receivables $245000

Loans to employees $36000

( 30% due at the end

of current year balance

Sheet date )

Investments $ 10000

Total current assets = $1,099,000

Non current assets:-

Fixed term deposits with banks $142000

Loans to the employees $84000

( 70% not due at the end of the

Balancesheet date)

PPE with historical cost 129000

Less:-

accumulated depreciation 12000 $ 117000

Investments $ 35000

Total non current assets = $ 378,000

( in case of loans to employees, the amount due with in one yeat from the dateof balance sheet shall be recorded as current assets and the amount not due with in one yeat from the date of balance sheet is recorded as non current assets )

Question 2)

Current liabilities :-

Trade payables $ 317000

Interest on note

Payable in this quarter $ 8000

Provision for un billed

Expenses $ 40000

Total current liabilities = $365000

Non current liabilities :-

Notes payable due on july

1st 20x7 $ 245000

Provision for employee benefits $ 248000

Interest free loan from share

Holder $ 400000

Total non current liabilities = $ 893000