On a balance sheet for auto supply use the following data to determine the total
ID: 2376374 • Letter: O
Question
On a balance sheet
for auto supply use the following data to determine the total dollar amount of assets to be classified as current assets
Cash..... 60,000 accounts payable.......55,000
Prepaid Insurance 40,000 salaries payable....... 10,000
Accounts receivable 50,000 mortgage payable......90,000
Total Liabilities..................165,000
Inventory 70,000
Land held for investment 60,000
Land 95,000
Buildings 100,000 Common stock 120,000
Less Accum. less depreciation 30,000 70,000 Retained Earnings 250,000
Trademark 70,000
Total Assets 535,000 Total stockholder equity 370,000
Total liabilities and
Stockholders equity 535,000
Explanation / Answer
Current Assets are those which can be liquidated within 1 year
Thus CA = Cash + Prepaid Insurance + Acc. Receivable + Inventory
= 60,000+40,000+50,000+70,000
=220,000
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