Leary Corporation's end-of-year balance sheet consisted of the following amounts:

$$\begin{array} { l r l r }
\text { Cash } & \$ 25,000 & \text { Accounts receivable } & \$ 46,000 \
\text { Property, plant, and equipment } & 69,000 & \text { Long-term debt } & 41,000 \
\text { Capital stock } & 107,000 & \text { Accounts payable } & 22,000 \
\text { Retained earnings } & ? & \text { Inventory } & 33,000
\end{array}$$
- What is Leary's total liabilities balance at the end of the current year?
A)$3,000
B)$110,000
C)$63,000
D)$173,000

Question

Leary Corporation's end-of-year balance sheet consisted of the following amounts:  
 
$$\begin{array} { l r l r } 
\text { Cash } & \$ 25,000 & \text { Accounts receivable } & \$ 46,000 \
\text { Property, plant, and equipment } & 69,000 & \text { Long-term debt } & 41,000 \
\text { Capital stock } & 107,000 & \text { Accounts payable } & 22,000 \
\text { Retained earnings } & ? & \text { Inventory } & 33,000
\end{array}$$
- What is Leary's total liabilities balance at the end of the current year?
A)$3,000
B)$110,000
C)$63,000
D)$173,000

Quizplus · Accepted Answer

Total liabilities include long-term debt and accounts payable, which sum to $41,000 + $22,000 = $63,000.

Leary Corporation's End-Of-Year Balance Sheet Consisted of the Following Amounts