Hanson Construction has an operating cycle of nine months. On December 31, 2011, Hanson has the following

Question:

Hanson Construction has an operating cycle of nine months. On December 31, 2011, Hanson has the following assets and liabilities:
a. A note receivable in the amount of $1,200 to be collected in six months.
b. Cash totaling $475.
c. totaling $1,800, all of which will be paid within two months.
d. totaling $12,000, including an account for $8,000 that will be paid in two months and an account for $4,000 that will be paid in 18 months.
e. Construction supplies costing $8,800, all of which will be used in construction within the next 12 months.
f. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulated.
g. A note payable to the bank in the amount of $7,600 is to be paid within the next year.
Required:
1. Calculate the amounts of current assets and current liabilities reported on Hanson’s at December 31, 2011.
2. Comment on Hanson’s liquidity. Accounts Payable
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