Question

The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Total assets for this Corporation are _________.

Answer 1

The aggregate assets for the corporation amounts to $245,000

Step-by-step explanation:

The aggregate assets for the corporation is computed as:

Total assets = Current assets + Long term assets

where

Current assets involve:

Current assets (CA) = Cash + Notes Payable + Accounts Receivable + Inventory

= $5,000 + $10,000 + $30,000 + $10,000

CA = $55,000

Long term assets involve:

Long term assets = (Machinery - Depreciation) + (Building - Depreciation) + Land

= ($50,000 - $25,000) + ($150,000 - $35,000) + $50,000

= $25,000 + $115,000 + $50,000

Long term assets = $190,000

Putting the values above:

Total assets = $55,000 + $190,000

Total assets = $245,000