Question

On december 31, 2015. company A report total assets of $ 4500,000 and total equity of...

On december 31, 2015. company A report total assets of $ 4500,000 and total equity of $ 2,345,000. all liabilities are current ( the company has no long term debt). the company has a current ration of 0.7. how much are current assets?

Homework Answers

Answer #1
a. As per Balance sheet Equation,
Total Liabilities = Total Assets - Equity
= $       45,00,000 - $ 23,45,000
= $       21,55,000
b. All liabilities are current liabiities.
So, Current liabilities $       21,55,000
c. Current Ratio = Current Asset / Current Liabiities
or, 0.7 = Current Asset / 2155000
or, Current Assets = $       15,08,500
Thus,
Current Assets $ 15,08,500
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