Consider the data in the Inventories T-account shown below and the partial listing of account balances at the end of the year. $$\begin{array}{l}
\text { Irventories }\
\begin{array} { | l | r | l | r | }
\hline \text { Begirning } & & & \
\hline \text { Balarice } & 187,500 & & \
\hline & & & \
\hline & & & \
\hline & 104,900 & \
\hline & 63,900 & & 18,000 \
\hline & & & 5,400 \
\hline & & & 14,700 \
\hline & & & 19,200 \
\hline
\end{array}
\end{array}$$ Partial listing of account balances at the end of the year:
$\begin{array}{|l|r|}
\hline \text { Cash } & \$ 28,000 \
\hline \text { Accounts Receivable } & 35,600 \
\hline \text { Inventories } & ? \
\hline \text { Other Current Assets } & 5,900\
\hline
\end{array}$ The amount of Total Current Assets that would be reported on the company's balance sheet at the end of the year would be:
A)$180,800.
B)$368,500.
C)$145,700.
D)$298,800.

Question

Consider the data in the Inventories T-account shown below and the partial listing of account balances at the end of the year. $$\begin{array}{l}
\text { Irventories }\
\begin{array} { | l | r | l | r | } 
\hline \text { Begirning } & & & \
\hline \text { Balarice } & 187,500 & & \
\hline & & & \
\hline & & & \
\hline & 104,900 & \
\hline & 63,900 & & 18,000 \
\hline & & & 5,400 \
\hline & & & 14,700 \
\hline & & & 19,200 \
\hline 
\end{array}
\end{array}$$ Partial listing of account balances at the end of the year:
$\begin{array}{|l|r|}
\hline \text { Cash } & \$ 28,000 \
\hline \text { Accounts Receivable } & 35,600 \
\hline \text { Inventories } & ? \
\hline \text { Other Current Assets } & 5,900\
\hline
\end{array}$ The amount of Total Current Assets that would be reported on the company's balance sheet at the end of the year would be:
A)$180,800.
B)$368,500.
C)$145,700.
D)$298,800.

Quizplus · Accepted Answer

Total current assets consist of cash, accounts receivable, inventories, and other current assets. We are given the balances of all these accounts except for inventories.

Using the T-account for inventories, we can calculate the ending balance:

Beginning balance + Purchases - Cost of goods sold = Ending balance

$187,500 + $104,900 - ($63,900 + $18,000 + $5,400 + $14,700 + $19,200) = $175,700

Therefore, total current assets = cash + accounts receivable + inventories + other current assets

= $28,000 + $35,600 + $175,700 + $5,900

= $245,200

Therefore, the answer is B) $368,500, which is the closest to $245,200.

Consider the Data in the Inventories T-Account Shown Below and the Partial