Use the following data to determine the total dollar amount of assets to be classified as current assets. Skysong, Inc. Balance Sheet December 31, 2017 Cash $193000 Accounts payable $199000 Accounts receivable 140000 Salaries and wages payable 30500 Inventory 171000 Mortgage payable 237000 Prepaid insurance 89900 Total liabilities $466500 Stock investments (long-term) 270000 Land 251000 Buildings $316000 Common stock $395400 Less: Accumulated depreciation (62500) 253500 Retained earnings 728500 Trademarks 222000 Total stockholders' equity $1123900 Total assets $1590400 Total liabilities and stockholders' equity $1590400

Question

Ryan Casey

Business

30 March, 16:31

Use the following data to determine the total dollar amount of assets to be classified as current assets. Skysong, Inc. Balance Sheet December 31, 2017 Cash $193000 Accounts payable $199000 Accounts receivable 140000 Salaries and wages payable 30500 Inventory 171000 Mortgage payable 237000 Prepaid insurance 89900 Total liabilities $466500 Stock investments (long-term) 270000 Land 251000 Buildings $316000 Common stock $395400 Less: Accumulated depreciation (62500) 253500 Retained earnings 728500 Trademarks 222000 Total stockholders' equity $1123900 Total assets $1590400 Total liabilities and stockholders' equity $1590400

+4

Answers (1)

Know the Answer?

Trevor Herring · Answer 1

Total Current Assets - $593,900

Explanation:

Current assets are resources that are easily used for business transactions.

These are assets that are usually accounted, sold or used by the business for one year or over the next period of time. Current assets include cash and cash equivalents, accounts receivable, merchandise inventory, and prepaid assets.

Thus, the total current assets of Skysong, Inc amount to $593,900 (Cash - $193,000, Accounts receivable - $140,000, Inventory - $171,000, and Prepaid insurance - $89,900).