Hanson Construction has an operating cycle of 9 months. On December 31, 2019, Hanson hasthe following assets and liabilities:a. A note receivable in the amount of $1,500 to be collected in 6 monthsb. Cash totaling $1,380c. Accounts payable totaling $2,100, all of which will be paid within 2 monthsd. Accounts receivable totaling $12,000, including an account for $7,000 that will be paid in2 months and an account for $5,000 that will be paid in 18 monthse. Construction supplies costing $6,200, all of which will be used in construction within thenext 12 monthsf. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulatedg. A note payable to the bank in the amount of $6,800 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, 2019.2. CONCEPTUAL CONNECTION Comment on Hanson’s liquidity.
Hanson Construction has an operating cycle of 9 months. On December 31, 2019, Hanson hasthe following assets and liabilities:a. A note receivable in the amount of $1,500 to be collected in 6 monthsb. Cash totaling $1,380c. Accounts payable totaling $2,100, all of which will be paid within 2 monthsd. Accounts receivable totaling $12,000, including an account for $7,000 that will be paid in2 months and an account for $5,000 that will be paid in 18 monthse. Construction supplies costing $6,200, all of which will be used in construction within thenext 12 monthsf. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulatedg. A note payable to the bank in the amount of $6,800 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, 2019.2. CONCEPTUAL CONNECTION Comment on Hanson’s liquidity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| 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 $1,500 to be collected in 6 months b. Cash totaling $1,380 c. Accounts payable totaling $2,100, all of which will be paid within 2 months d. 2 months and an account for $5,000 that will be paid in 18 months e. Construction supplies costing $6,200, all of which will be used in construction within the next 12 months f. Construction equipment costing $60,000, on which g. A note payable to the bank in the amount of $6,800 is to be paid within the next year Required: 1. Calculate the amounts of current assets and current liabilities reported on Hanson’s 2. CONCEPTUAL CONNECTION Comment on Hanson’s liquidity. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education