CURRENT ASSETS AND CURRENT LIABILITIES. Hanson Construction has an operating cycle of 9 months. On December 31, 19x6, Hanson has the following assets and liabilities:

a) A note receivable in the amount of $1,000 to be collected in 6 months.

b) Cash totaling $600.

ce) Accounts payable totaling $1,800, all of which will be paid within 2 months.

d) Accounts receivable totaling $12,000, including an account for $8,000 that will be paid in 2 months and an account for $4,000 that will be paid in 18 months.

e) An inventory of construction materials costing $9,200, all of which will be used in construction within the next 12 months. The $9,200 inventory includes materials costing $6,720 that will be used within the next 9 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 $40,000, of which $7,000 is to be paid within the next year and the remainder in subsequent years.

REQUIRED:

Calculate the amounts of current assets and current liabilities reported on Hanson’s balance sheet at December 31, 19x6. L-1