Answered: · Cash on hand – 200,000 ·…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The working capital of BT21 Co. on December 31, 2021 are presented below:

·        Cash on hand – 200,000

·        Cash in bank – 108,000

·        Notes receivable – 250,000

·        Trade receivable – 600,000

·        Inventory – 650,000

·        Prepaid expenses – 45,000

·        Trade payables – 325,000

·        Notes payable (due annually at 500,000 payable every March 31) – 1,000,000

·        Accrued expenses – 40,000

How much total current assets should BT21 Co. present in its statement of financial position on December 31, 2021?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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