The following is selected financial data from Block Industries:Cash$20,000Accounts receivable13,400Equipment10,650Prepaid expenses5,000Accounts payable12,300Unearned revenue7,500Long-term notes payable10,000Common stock18,000Revenue11,700Sales tax payable6,000Interest expense4,500Depreciation expense1,000How much does Block Industries have in current liabilities?A.$12,300B.$25,800C.$18,300D.$19,800

Introduction: Current liability: Current liabilities also called as short term liabilities. Which are payable in a year less than 12 months called current liability.Block industries current liabilities: Current liabilities = Accounts payable + Unearned revenue + sales tax payable = 12300 + 7500 + 6000 = $ 25800 Hence, correct answer is option B ) $ 25800

Answered: The following is selected financial…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

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The following is selected financial data from Block Industries:

Cash	$20,000
Accounts receivable	13,400
Equipment	10,650
Prepaid expenses	5,000
Accounts payable	12,300
Unearned revenue	7,500
Long-term notes payable	10,000
Common stock	18,000
Revenue	11,700
Sales tax payable	6,000
Interest expense	4,500
Depreciation expense	1,000

How much does Block Industries have in current liabilities?

A.$12,300

B.$25,800

C.$18,300

D.$19,800

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