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

Question

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

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