Current Assets and Current Liabilities Hanson Construction has an operating cycle of months. On December 3, Hanson has the following assets and liabilities: . A not receivable in the amount of $1,200 to be collected in 6 months b. Cash totaling $420 Accounts payable totaling $1,700, all of which will be paid within 2 months d. Accounts receivable totaling $12,000, including an account for $1,000 that will be paid in 3 months and an accoure 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 t. Construction equipment costing 560,000, on which depreciation of $22.400 as accumulated 9. 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 balance sheet at December 31 Total current assets 22,420 X Total current liabilities 9,300 2. Conceptual Connection: Comment on Hanson's quidity, Because the current assets exceed the current liabilities it appears that Hanson is able to pay toots that become tue within the next year Fada Oh My 1. Assets are economic resources of a company Current acts consist of cash and other assets that are reasonably expected to be converted to car within one year. Current abilities are obligations to be satisfied within one year Go through each item and determine if it is current asset/lability or other. Some items may be partially a current assetability and partially a noncurrent asset/liability 2. Liquidity represents a company's ability to pay its obligations as they become oue. Previous Next > Check My Work more Check My Work uses mang Email instructor Save and Edt Submit Assignment for Grading All work saved