Question

The following financial information is from Shovels Construction Company: Accounts payable $ 14,200 Buildings 87,000 Cash 12,300 Accounts receivable 9,800 Sales tax payable 3,400 Retained earnings 45,500 Supplies 41,000 Notes payable (due in 18 months) 33,000 Interest payable 2,900 Common stock 51,100 What is the amount of current assets, assuming the accounts above reflect normal activity

Answer 1

63,100

Step-by-step explanation:

Shovels Construction Company have the following financial information

Accounts payable $ 14,200

Buildings 87,000

Cash 12,300

Accounts receivable 9,800

Sales tax payable 3,400

Retained earnings 45,500

Supplies 41,000

Notes payable (due in 18 months) 33,000

Interest payable 2,900

Common stock 51,100

Therefore the amount of current assets can be calculated as follows

= cash + account receivables + Supplies

= 12,300 + 9,800 + 41,000

= 63,100

Hence the amount of current assets is 63,100