Current Assets and Current Liabilities Hanson Construction has an operating cycle of 9 months. On December 31, 2019, Hanson has the following assets and liabilities: a. A note receivable in the amount of $1,200 to be collected in 6 months b. Cash totaling $470 c. Accounts payable totaling $2,000, all of which will be paid within 2 months d. Accounts receivable totaling $12,000, including an account for $8,000 that will be paid in 2 months and an account for $4,000 that will be paid in 18 months e. Construction supplies costing $8,800, all of which will be used in construction within the next 12 months f. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulated g. A note payable to the bank in the amount of $7,600 is to be paid within the next year Required: 1. Calculate the amounts of current assets and current liabilities reported on Hanson's balance sheet at December 31, 2019. Total current assets Total current liabilities 2. Conceptual Connection: Comment on Hanson's liquidity. Because the exceed the it appears that Hanson to pay its debts that become due within the next year.

Current Assets and Current Liabilities Hanson Construction has an operating cycle of 9 months. On December 31, 2019, Hanson has the following assets and liabilities: a. A note receivable in the amount of $1,200 to be collected in 6 months b. Cash totaling $470 c. Accounts payable totaling $2,000, all of which will be paid within 2 months d. Accounts receivable totaling $12,000, including an account for $8,000 that will be paid in 2 months and an account for $4,000 that will be paid in 18 months e. Construction supplies costing $8,800, all of which will be used in construction within the next 12 months f. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulated g. A note payable to the bank in the amount of $7,600 is to be paid within the next year Required: 1. Calculate the amounts of current assets and current liabilities reported on Hanson's balance sheet at December 31, 2019. Total current assets Total current liabilities 2. Conceptual Connection: Comment on Hanson's liquidity. Because the exceed the it appears that Hanson to pay its debts that become due within the next year.

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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