Question

Killer Whale, Inc. has the following balance sheet statement items: total current liabilities of $798,637; net fixed and other assets of $1,377,307; total assets of $2,927,105; and long-term debt of $773,501. What is the amount of the firm’s current assets?

Answer 1

The current assets of Killer Whale, Inc. amount to $1,549,798, calculated by subtracting net fixed and other assets from the total assets of the company.

Step-by-step explanation:

To calculate the current assets of Killer Whale, Inc., we need to understand that the balance sheet follows the equation Assets = Liabilities + Shareholders' Equity. Since current and long-term liabilities and shareholders' equity are not separated here, we need to use the information provided to find the current assets strategically. The total assets are given as $2,927,105, while net fixed and other assets are $1,377,307.

To find the current assets, we subtract net fixed and other assets from total assets:

Current Assets = Total Assets - Net Fixed and Other Assets

Current Assets = $2,927,105 - $1,377,307

Current Assets = $1,549,798

This calculation provides us with the final answer for the current assets held by Killer Whale, Inc.