Tumbling Haven, a gymnastic equipment manufacturer, provided the following information to its accountants. The company had current assets of $145,332, net fixed assets of $356,190, and other assets of $4,176. The firm has long-term debt of $76,445, common stock of $200,000, and retained earnings of $134,461. What amount of current liabilities does this firm have?

Question

Quizplus · Accepted Answer

Current liabilities are calculated as follows:
Current Assets - Other Assets = Total Assets - Current Liabilities - Long-term Debt - Common Stock - Retained Earnings
$145,332 - $4,176 = $505,678 - Current Liabilities - $76,445 - $200,000 - $134,461
$141,156 = Current Liabilities
Therefore, the amount of current liabilities for Tumbling Haven is $94,792. Option A is the correct choice.

Tumbling Haven, a Gymnastic Equipment Manufacturer, Provided the Following Information