Question

g Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. Debit Credit Accounts receivable710 Building and equipment920 Cash39 Interest receivable30 Inventory16 Land150 Notes receivable (long-term)450 Prepaid rent20 Supplies8 Trademark40 Accounts payable 560 Accumulated depreciation 80 Additional paid-in capital 485 Dividends payable 30 Common stock (at par) 15 Income tax payable 65 Notes payable (long-term) 800 Retained earnings 308 Deferred revenue 40 TOTALS2,383 2,383 What would Symphony report as total current assets

Answer 1

Symphony Stores would report a total current assets of $815 million.

Step-by-step explanation:

To calculate Symphony Stores' total current assets, we need to identify which accounts represent current assets. Current assets are those that are expected to be converted into cash or used up within one year. In the given list, the accounts receivable, cash, interest receivable, inventory, and prepaid rent are considered current assets.

Therefore, the total current assets for Symphony Stores would be the sum of the balances in these accounts: $710 + $39 + $30 + $16 + $20 = $815 million.

Answer 2

Answer: $823 million

Step-by-step explanation:

Current Assets are those that the company expects to have only for a year or less as they will either be sold or used.

The Current Assets in the list are;

= Accounts receivable + Cash + Interest Receivable + Inventory + Prepaid rent + Supplies

= 710 + 39 + 30 + 16 + 20 + 8

= $823 million