Question

In its December 31, 2016 financial statements, Harley-Davidson reported the following (in millions):
Long-term Assets Current Liabilities Long-term Liabilities Total Liabilities Equity
$6,036 $ 2,863 $ 5,107 $7,970 $1,920
At December 31, 2016, current assets amount to:
$2,863 million
$3,854 million
$7,970 million
$5,519 million
None of the above

Answer 1

Answer:

$3,854 million

Explanation:

In every balance sheet, the accounting equation is used that means

Total assets = Total liabilities + Shareholder equity

where,

Total liabilities is $7,970 and equity is $1,920

So, the total assets would be

= $7,970 + $1,920

= $9,890 million

And we know that,

Total assets = Long term assets + current assets

$9,890 = $6,036 + current assets

So, the current assets would be

= $9,890 - $6,036

= $3,854 million