Total equity is $1,620,fixed assets are $1,810,long-term debt is $650,and short-term debt is $300.What is the amount of current assets?
A)$760
B)$360
C)$1,140
D)$480
E)$790

Question

Quizplus · Accepted Answer

$760To find the amount of current assets, we can use the accounting equation: Total Assets = Total Liabilities + Equity. Rearranging this equation to solve for Total Assets gives us Total Assets = Equity + Long-term Debt + Short-term Debt. Substituting the given values, we get Total Assets = $1,620 (Equity) + $650 (Long-term Debt) + $300 (Short-term Debt) = $2,570. Since Total Assets = Current Assets + Fixed Assets, and we know Fixed Assets are $1,810, we can solve for Current Assets: Current Assets = Total Assets - Fixed Assets = $2,570 - $1,810 = $760.

Total Equity Is $1,620,fixed Assets Are $1,810,long-Term Debt Is $650,and