Compute the current liabilities for the Yi Yo investment center as shown below. $\begin{array}{lr}
& \text { Yi Yo Subsidiary } \
\text { Total sales } & \$ 18,000 \
\text { After-tax operating income } & \$ 1,000 \
\text { Total assets } & \$ 15,000 \
\text { Current liabilities } & \$ ? \
\text { Total assets - current liabilities } & \$ 3,500 \
\text { Cost of capital } & 15 \% \
\text { Ficnnnmic value ardlerl } &?
\end{array}$

Question

Compute the current liabilities for the Yi Yo investment center as shown below. $\begin{array}{lr}
 & \text { Yi Yo Subsidiary } \
\text { Total sales } & \$ 18,000 \
\text { After-tax operating income } & \$ 1,000 \
\text { Total assets } & \$ 15,000 \
\text { Current liabilities } & \$ ? \
\text { Total assets - current liabilities } & \$ 3,500 \
\text { Cost of capital } & 15 \% \
\text { Ficnnnmic value ardlerl } &?
\end{array}$

Quizplus · Accepted Answer

The current liabilities can be calculated by subtracting "Total assets - current liabilities" from "Total assets": $15,000 - $3,500 = $11,500.

Compute the Current Liabilities for the Yi Yo Investment Center