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The balance sheet of JKL Corp. as of December 31, 2023, presents the following account balances: Assets : Cash and Cash Equivalents: $550,000 Accounts Receivable:
- The balance sheet of JKL Corp. as of December 31, 2023, presents the following account balances:
- Assets:
- Cash and Cash Equivalents: $550,000
- Accounts Receivable: $320,000
- Inventory: $420,000
- Prepaid Expenses: $60,000
- Property, Plant, and Equipment: $1,000,000
- Accumulated Depreciation: ($180,000)
- Goodwill: $180,000
- Liabilities and Equity:
- Accounts Payable: $200,000
- Accrued Liabilities: $80,000
- Short-term Borrowings: $150,000
- Long-term Debt: $800,000
- Common Stock: $550,000
- Retained Earnings: $600,000
- Total Liabilities and Equity: $2,410,000
- Total Assets: $2,810,000
- Assets:
- a. Calculate the Total Current Assets and explain their importance in assessing liquidity.
- b. Determine the Total Equity and discuss its implications for shareholder value.
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