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3 April, 11:33

Use the following information to answer the question about BobCat Co. at the end of 2017:

Accounts receivable $44,890

Accounts payable 6,405

Cash 16,070

Common stock 42,500

Long-term notes payable 20,600

Merchandise inventory 28,475

Salary Payable 28,170

Retained earnings 50,465

Prepaid insurance 2,365

Current liabilities are:

A. 6,405

B. 20,600

C. 34,575

D. 36,940

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Answers (1)
  1. 3 April, 14:20
    0
    c. $34,575

    Explanation:

    Data provided in the question

    Accounts receivable = $44,890

    Accounts payable = $6,405

    Cash = $16,070

    Common stock = $42,500

    Long-term notes payable = $20,600

    Merchandise inventory = $28,475

    Salary Payable = $28,170

    Retained earnings = $50,465

    Prepaid insurance = $2,365

    So, The computation of the current liabilities are as follows

    = Accounts payable + salary payable

    = $6,405 + $28,170

    = $34,575

    Therefore, the current liabilities only includes the account payable and the salary payable.
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