Question

The classified balance sheet for a company reported current assets of $1,754,244, total liabilities of $817,540, common stock of $1,180,000, and retained earnings of $148,260. The current ratio was 2.7. What is the total amount of noncurrent assets?

Answer 1

$391,556

Step-by-step explanation:

The values given are:

Total liabilities= $817,540

Common stock= $1,180,000

Retained earnings= $148,260

Current assets= $1,754,244

Therefore the non-current assets can be calculated as follows

Total liabilities+Common stock+Retained earnings-Current assets

$817,540+$1,180,000+$148,260-$1,754,244

= $2,145,800-$1,754,244

= $391,556

Hence the total amount of non-current assets is $391,556