Question

Compute the dollar amount of current assets based on the following account balances.
Accounts Receivable $22,000
Accumulated Depreciation—Equipment 27,000
Cash 8,400
Equipment 93,000
Prepaid Rent 7,000
Short-term Investments 15,000

Answer 1

Given:

Accounts Receivable = $22,000

Accumulated Depreciation-Equipment = $27,000

Cash = $8,400

Equipment = $93,000

Prepaid Rent = $7,000

Short-term Investments = $15,000

To find:

Current assets

Solution:

Current assets are the cash and other assets that are expected to be converted to cash within a year.

From the given, the current assets are account receivable,cash,prepaid rent,and short term investment. Adding all the values we get,

$\text{Current Assets }=\ 22000+\ 8400+\ 15000+\ 7000=\ 52400$

Therefore, the value of current assets is $52400.