The December 31,2021, Statement of Financial Position of REED Company contained the following current assets; Cash and cash equivalents - P2,400,525; Accounts receivable, net - P1,775,500; Inventories - P 387,270; Prepaid expenses - P500,000 An examination revealed that: • Cash – includes P400,000 set aside for plant expansion, cash in bank which is net of bank overdraft, P13,000 and petty cash fund including IOUS of employees totaling, P3,500 • Accounts receivable – includes accounts with credit balances of P45,000, accounts for write-of, P12,500 • Inventories - includes goods held on consignment, P27,000, goods in transit to customers, FOB destination, P85,750 Prepaid expenses - consist of an insurance applicable for 6 months starting September 16, 2021, P96,000

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Q: Define Current assets

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Q: What is non current assets ?

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Q: What does the Total-Assets-Turnover Ratio measure?

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Q: What assets are viewed as current financial resources?

A:

Q: Adjusted Net Asset Value method

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Q: What is the relationship of the asset turnover to the return on assets?

A:

Q: what should be reported as total assets

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