Assume a new company had the following transactions for Day 1 and then immediately prepared a balance sheet. Compute the company’s total “Current Assets”. - They borrowed $105 from the bank to be repaid with 8% in 10 years. - They used $86 of the cash from the loan for a new delivery truck - They purchased $16 of inventory on account And they expect to sell the inventory within the next 90 days. What is their total current assets?
Assume a new company had the following transactions for Day 1 and then immediately prepared a balance sheet. Compute the company’s total “Current Assets”. - They borrowed $105 from the bank to be repaid with 8% in 10 years. - They used $86 of the cash from the loan for a new delivery truck - They purchased $16 of inventory on account And they expect to sell the inventory within the next 90 days. What is their total current assets?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 25BEB
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Assume a new company had the following transactions for Day 1 and then immediately prepared a balance sheet. Compute the company’s total “Current Assets”.
- They borrowed $105 from the bank to be repaid with 8% in 10 years.
- They used $86 of the cash from the loan for a new delivery truck
- They purchased $16 of inventory on account
And they expect to sell the inventory within the next 90 days.
What is their total current assets?
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