Diane 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: 1-a. What is the amount of current liabilities? Current liabilites 1-b. Compute working capital. Working capital $580,000 326,000 25,000 52,000 14,000 4,000 11,000 111,000 11,000 7,000 13,000 700 100,000
Diane 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: 1-a. What is the amount of current liabilities? Current liabilites 1-b. Compute working capital. Working capital $580,000 326,000 25,000 52,000 14,000 4,000 11,000 111,000 11,000 7,000 13,000 700 100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Diane 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 i
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:
1-a. What is the amount of current liabilities?
Current liabilities
1-b. Compute working capital.
Working capital
$580,000
326,000
25,000
52,000
14,000
4,000
11,000
111,000
11,000
7,000
13,000
700
100,000
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