Tangela Company has now missed three loan payments in a row. As you can imagine, Tangelas bank is quite upset. Legally, Tangelas bank can demand full repayment of the loan immediately. Tangela doesnt have the cash to repay the loan, so an immediate repayment demand would force Tangela into bankruptcy.

Tangela and the bank are now in negotiations. The bank wants some type of guarantee that it will be able to collect its money if Tangela does slide into bankruptcy. Tangela offers to write a new agreement in which the bank will acquire legal title to all of Tangelas current assets in case of bankruptcy. The bank wants to know what Tangelas current asset balance is.

Tangela Companys financial records include these accounts at the end of the year.

Land Accounts Receivable Buildings Inventory Loans Payable Accounts Payable Retained Earnings Capital Stock (also called Paid-in Capital) Cash

Which set of items composes a complete listing of Tangelas current assets?

• Cash, accounts receivable, and inventory
• Cash, inventory, and capital stock
• Cash, buildings, and land
• Cash, retained earnings, and capital stock