Question

Valor Corporation holds cash of $ 5,000 and owes $ 26,000 on accounts payable. Valor has accounts receivable of $ 38,000 comma inventory of $ 28,000​, and land that cost $ 65,000. How much are Valor​'s total assets and​ liabilities?

Answer 1

The total assets = $136,000

Total liabilities = $26,000

Step-by-step explanation:

Given:

Total cash = $5,000

Accounts payable = $26,000

accounts receivable = $38,000

inventory = $28,000

cost of land = $65,000

Now,

the total assets = Total cash + accounts receivable + inventory + cost of land

or

the total assets = $5,000 + $38,000 + $28,000 + $65,000 = $136,000

Total liabilities = $26,000

Answer 2

Total assets = $136,000

Total liabilities = $30,000

Step-by-step explanation:

Total assets: It includes all types of assets whether it is current or long term assets or intangible assets.

Total liabilities: It include all types of liabilities whether it is current or long term liabilities

The computation of the total assets is shown below:

= Cash + accounts receivable + inventory + land

= $5,000 + $38,000 + $28,000 + $65,000

= $136,000

The computation of the total liabilities is shown below:

= Accounts payable

= $26,000