148k views
5 votes
Wing CompanyCash- $234,000 Accounts payable- $97,000Inventories- $121,000 Notes payable (due 2020)- $211,000Land- $453,000 Accounts receivable- $46,000Refer to the information provided for Wing Company. Calculate current assets.a. $498,000b. $401,000c. $854,000d. $709,000

User MacSanhe
by
6.3k points

1 Answer

1 vote

Answer:

b. $401,000

Step-by-step explanation:

Currents assets refer to assets that are possible to be employed, exhausted, consumed, or sold withing a one year during the normal business activities of a company.

Current assets therefore include cash, cash equivalent and other assets that are expected to be changed to cash within one year.

From the question, we have;

Cash- $234,000

Accounts payable- $97,000

Inventories- $121,000

Notes payable (due 2020)- $211,000

Land- $453,000

Accounts receivable- $46,000

Therefore, current assets of Wing Company can be computed as follows:

Current assets = Cash + Inventories + Accounts receivable = $234,000 + $121,000 + $46,000 = $401,000

Therefore, the correct option is b. $401,000.

User Mag Roader
by
5.3k points