Peter\'s Plants currently has $800 in cash. The company owes $1,800 to suppliers

Question

Peter's Plants currently has $800 in cash. The company owes $1,800 to suppliers for merchandise and $6,000 to the bank for a long-term loan. Customers owe Peter's $2,500. The inventory has a book value of $4,100 and an estimated market value of $5,400. If Peter's compiled a financial statement today, how much would it show as the value of the current assets? a. $5,600 b. $6,600 c. $6,900 d. $7,400 e. $8,700
Peter's Plants currently has $800 in cash. The company owes $1,800 to suppliers for merchandise and $6,000 to the bank for a long-term loan. Customers owe Peter's $2,500. The inventory has a book value of $4,100 and an estimated market value of $5,400. If Peter's compiled a financial statement today, how much would it show as the value of the current assets? a. $5,600 b. $6,600 c. $6,900 d. $7,400 e. $8,700
Peter's Plants currently has $800 in cash. The company owes $1,800 to suppliers for merchandise and $6,000 to the bank for a long-term loan. Customers owe Peter's $2,500. The inventory has a book value of $4,100 and an estimated market value of $5,400. If Peter's compiled a financial statement today, how much would it show as the value of the current assets? a. $5,600 b. $6,600 c. $6,900 d. $7,400 e. $8,700

Explanation / Answer

Solution: Current assets can be calculated as follows:

Current assets = cash 800+ inventory 4,100 +accounts receivable 2,500 = $7,400

Thus, answer is Option (d) $7,400

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