Question
Kwans boss has asked him to evaluate his current assets on his balance sheet. However, Kwan is not exactly sure what his current assets are.
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Kwans boss has asked him to evaluate his current assets on his balance sheet. However, Kwan is not exactly sure what his current assets are. Help Kwan by examining his balance sheet accounts and answering the following questions.
Kwans boss has asked him to evaluate his current assets on his balance sheet. However, Kwan is not exactly sure what his current assets are. Help Kwan by examining his balance sheet accounts and answering the following questions.
Balance Sheet Accounts |
|
|
|
|
Investments | 373,256 |
| Paid in Capital | 486,486 |
Other Current Liabilities | 73,954 |
| Accumulated Depreciation | 203,144 |
Building | 627,998 |
| Inventories | 51,818 |
Accounts Payable | 213,659 |
| Common Stock | 133,421 |
Long-Term Debt | 395,315 |
| Prepaid Expenses | 15,000 |
Cash | 85,976 |
| Retained Earnings | 477,500 |
Furnishings and Equipment | 308,334 |
| Land | 309,080 |
Notes Payable | 47,858 |
| Net Receivables | 40,000 |
Marketable Securities | 196,154 |
| Other Assets | 23,721 |
Using the balance sheet accounts:
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Identify the current assets.
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(List them in the order of liquidity.)
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Calculate Total Current Assets.
Current Asset Accounts (In Order) | Dollar Amounts |
Cash in Hand | 85,976 |
Net Receivables | 40,000 |
Inventories | 51,818 |
Prepaid Expenses | 15,000 |
Marketable Securities
| 196,154 |
Total Current Assets |
|
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Explain to Kwan why each current asset is listed in its particular order of liquidity.
Cash is needed in day to day to operate
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Aidan Norton owns Aidans Lodge in a rural Midwestern town. His accountant is out with the flu, and Aidan has to develop his balance sheet without his accountants help. Using the following balance sheet accounts, help Aidan complete his balance sheet.
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