Question

Based on the following data, what is the amount of current assets? Accounts payable $63500 Accounts receivable 105000 Cash 65000 Intangible assets 105000 Inventory 139000 Long-term investments 165500 Long-term liabilities 211500 Short-term investments 84000 Notes payable 55500 Property, plant, and equipment 1305000 Prepaid insurance 2300

Answer 1

The amount of current asset is: $395,300

Step-by-step explanation:

The amount of current asset is the sum of each item categorized as current asset in the given data. So we need to realize which item is the current asset, which is not.

We have:

+ Account Payable: current liabilities;

+ Account Receivable: current asset;

+ Cash: Current asset;

+ Intangible asset: non-current asset;

+ Inventory: current asset;

+ Long-term investment: non-current asset;

+ Long-term liabilities: non-current asset;

+ Short-term investment: current asset;

+ Notes payable: non-current liabilities;

+ Property, plant, and equipment: non-current asset;

+ Prepaid insurance: current asset.

=> Total current asset amount = Account receivable + Cash + inventory + short-term investment + prepaid insurance = 105,000 + 65,000 + 139,000 + 84,000 + 2,300 = $395,300.