Question

Martex, a new company, completed these transactions.1. Stockholders invested $48,000 cash and inventory with a fair value of $28,0002. Sales on account, $20,000What will Martex's total assets equal?

Answer 1

Martex's total assets after stockholders invested cash and inventory, and made sales on account, would be $96,000, which is the sum of cash, inventory, and accounts receivable.

Step-by-step explanation:

The question pertains to calculating the total assets of Martex, a new company, after its initial transactions. Initially, stockholders invested $48,000 in cash and inventory with a fair value of $28,000, which are both assets. Subsequently, Martex made sales on account for $20,000, which would be accounted for as accounts receivable (an asset) until paid.

Therefore, the total assets of Martex after these transactions would be:

• Cash: $48,000
• Inventory: $28,000
• Accounts Receivable (from sales on account): $20,000

Total Assets = Cash + Inventory + Accounts Receivable
= $48,000 + $28,000 + $20,000
= $96,000