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Compute the current assets for Bronco?

User Janaye
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1 Answer

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Final answer:

To compute Bronco's current assets, the available information suggests that reserves totaling 30 might be the only current assets unless it's clarified that bonds and loans are short-term. Without such clarification, the current assets are tentatively 30.

Step-by-step explanation:

To compute the current assets for Bronco, we need to consider the types of assets that can be readily converted to cash within a year. However, based on the following information provided (Assets - reserves 30, bonds 50, and loans 50; Liabilities - deposits 300 and equity 30), it does not clearly state which assets are current and which are non-current. Typically, reserves would be considered a current asset as they are often seen as cash or cash equivalents. Bonds and loans, unless they are due to mature or be repaid within the year, would be considered non-current assets. With the given information, we can assume that the reserves are the only current assets and total 30. If the bonds and loans are indeed short-term, they would also be added to the current assets, giving a potential total of 130 (reserves 30, short-term bonds 50, and short-term loans 50). Without further detail on the maturity of the bonds and loans, the most conservative and clear answer is that the current assets total 30, solely from the reserves.

User Thomas Zimmermann
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