Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: Total assets Total noncurrent assets Liabilities: Notes payable (8%, due in 5 years) Accounts payable Income taxes payable Liability for withholding taxes Rent revenue collected in advance Bonds payable (due in 15 years) Wages payable Property taxes payable Note payable (10%, due in 6 months) Interest payable Common stock Required: Required 1a Required 1b Required 2 $ 590,000 306,000 What is the amount of current liabilities? 17,000 52,000 14,000 1-a. What is the amount of current liabilities? 1-b. Compute working capital. 2. Would your computation be different if the company reported $260,000 worth of contingent liabilities in the notes to its financial statements? Current liabilities 5,000 8,000 117,000 Complete this question by entering your answers in the tabs below. 8,000 4,000 15,000 600 240,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The image contains the following text and elements:

1. **Text Instruction:**
   - "Compute working capital."

2. **Interactive Element:**
   - A labeled input field with the text "Working capital" and a blank space to enter data.

This image appears to be part of an interactive webpage designed to teach users how to calculate working capital. Users are prompted to compute the working capital value and input their answer in the provided field. This is likely part of an educational activity or module focusing on financial literacy or accounting. 

There are no graphs or diagrams in the image.
Transcribed Image Text:The image contains the following text and elements: 1. **Text Instruction:** - "Compute working capital." 2. **Interactive Element:** - A labeled input field with the text "Working capital" and a blank space to enter data. This image appears to be part of an interactive webpage designed to teach users how to calculate working capital. Users are prompted to compute the working capital value and input their answer in the provided field. This is likely part of an educational activity or module focusing on financial literacy or accounting. There are no graphs or diagrams in the image.
Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year:

- **Total assets:** $590,000
- **Total noncurrent assets:** $306,000

**Liabilities:**
- Notes payable (8%, due in 5 years): $17,000
- Accounts payable: $52,000
- Income taxes payable: $14,000
- Liability for withholding taxes: $5,000
- Rent revenue collected in advance: $8,000
- Bonds payable (due in 15 years): $117,000
- Wages payable: $8,000
- Property taxes payable: $4,000
- Note payable (10%, due in 6 months): $15,000
- Interest payable: $600

**Common stock:** $240,000

**Required:**

1-a. What is the amount of current liabilities?
1-b. Compute working capital.
2. Would your computation be different if the company reported $260,000 worth of contingent liabilities in the notes to its financial statements?

**Instructions:**
Complete this question by entering your answers in the tabs below.

- **Required 1a:** What is the amount of current liabilities?
Transcribed Image Text:Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: - **Total assets:** $590,000 - **Total noncurrent assets:** $306,000 **Liabilities:** - Notes payable (8%, due in 5 years): $17,000 - Accounts payable: $52,000 - Income taxes payable: $14,000 - Liability for withholding taxes: $5,000 - Rent revenue collected in advance: $8,000 - Bonds payable (due in 15 years): $117,000 - Wages payable: $8,000 - Property taxes payable: $4,000 - Note payable (10%, due in 6 months): $15,000 - Interest payable: $600 **Common stock:** $240,000 **Required:** 1-a. What is the amount of current liabilities? 1-b. Compute working capital. 2. Would your computation be different if the company reported $260,000 worth of contingent liabilities in the notes to its financial statements? **Instructions:** Complete this question by entering your answers in the tabs below. - **Required 1a:** What is the amount of current liabilities?
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