Huron has provided the following year-end balances: Cash,$25,000
Patents,$7,900
Accounts receivable,$9,300
Property,plant,and equipment,$98,700
Prepaid insurance,$3,600
Accumulated depreciation,$10,000
Inventory,$37,000
Retained earnings,15,500
Trademarks,$12,600
Accounts payable,$8,000
Goodwill,$11,000
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How much are Huron's current assets?
A)$85,900.
B)$71,300.
C)$74,900.
D)$102,100.

Question

Quizplus · Accepted Answer

Current assets are those assets that can be easily converted into cash within one year. Thus, the current assets of Huron are: Cash ($25,000), accounts receivable ($9,300), prepaid insurance ($3,600), and inventory ($37,000). Adding all these amounts gives us a total of $74,900. Therefore, option C is correct.

Huron Has Provided the Following Year-End Balances: Cash,$25,000