Chapter 3, Problem 3.1E

Balance sheet; missing elements

• LO3–2, LO3–3, LO3–8

Cash and cash equivalents	$ 5,000
Accounts receivable (net)	20,000
Inventories	60,000
Property, plant, and equipment (net)	120,000
Accounts payable	44,000
Wages payable	15,000
Paid-in-capital	100,000

The only asset not listed is short-term investments. The only liabilities not listed are a $30,000 note payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1.

Required:

Determine the following at December 31, 2018:

1. Total current assets

2. Short-term investments

3. Retained earnings