The balance sheet shows the following accounts and amounts:Inventory, $42,000; Long-term Debt 62,500; Common Stock $30,000; Accounts Payable $22,000; Cash $66,000; Buildings and Equipment $195,000; Short-term Debt $24,000; Accounts Receivable $54,500; Retained Earnings $102,000; Notes Payable (nine month) $27,000; Accumulated Depreciation $90,000.Total current assets on the balance sheet are:
Question
The balance sheet shows the following accounts and amounts:Inventory, 30,000; Accounts Payable 66,000; Buildings and Equipment 24,000; Accounts Receivable 102,000; Notes Payable (nine month) 90,000.Total current assets on the balance sheet are:
Solution
To calculate the total current assets on the balance sheet, you need to add up all the assets that can be converted into cash within one year. In this case, the current assets are Inventory, Cash, and Accounts Receivable.
Here's the calculation:
Inventory: 66,000 Accounts Receivable: $54,500
Total Current Assets = Inventory + Cash + Accounts Receivable Total Current Assets = 66,000 + 162,500
So, the total current assets on the balance sheet are $162,500.
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