Question

Answer the following questions: Cash Inventory Long term Debt-10% to be paid in 1 year Patent Sales Cost of Goods Sold Accumulated Depreciation Land Prepaid Insurance Paid in Capital Salary Expense Supplies Expense Unearned Revenue Manufacturing Building Accrued Expense Common Stock Mortgage Payable-due in 10 years Accounts Receivable Long-Term Investment Goodwill Notes Receivable - due in 6 months Manufacturing Equipment $ 34,000 $ 97,000 $120,000 $ 11,000 $378,000 $195.000 $ 56,000 $100,000 $ 4,000 $ 29,000 $ 39,000 $ 3,000 $ 2,500 $125,000 $ 14,000 $ 1.000 $ 90.000 $ 27,000 $ 50,000 $ 20,000 $ 5.000 $ 89,000

A. Determine the total amount of assets expected to be converted into cash in one year or less?


B. Determine the total amount of long term assets

C. Determine the amount of total current liabilities?


D. Determine the total amount long term liabilities?

Answer 1

:: Solution ::

Answer is given below :

A. Determine the total amount of assets expected to be converted into cash in one year or less
Assets < 1 year	Amt in Dollars
Inventory	97,000
Accounts receivable	27,000
Notes receivable - due in 6 months	5,000
Total	129,000
B. Determine the total amount of long term assets
Long-term assets	Amt in Dollars
Patent	11,000
Land	100,000
Manufacturing building - 125,000
Manufacturing equipment - 89,000
Less: Accummulated depreciation - 56,000	158,000
Long-term investment	50,000
Goodwill	20,000
Total	339,000
C. Determine the total amount of current liabilities
Current Liabilities	Amt in Dollars
Long-term debt - 10% to be paid in 1 year	120,000
Unearned revenue	2,500
Total	122,500
D. Determine the total amount of long-term liabilities
Long-term liabilities	Amt in Dollars
Mortgage payable - due in 10 years	90,000
Total	90,000