Use the Following Data to Determine the Total Dollar Amount

question 117

Multiple Choice

Use the following data to determine the total dollar amount of assets to be classified as current assets. Carne Auto Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 70,000 & \text { Accounts payable } & \$ 130,000 \\\text { Accounts receivable } & 100,000 & \text { Salaries and wages payable } & 20,000 \\\text { Inventory } & 140,000 & \text { Mortgage payable } & 180,000 \\\text { Prepaid insurance } & 80,000 & \text { Total liabilities } & \$ 330,000 \\\text { Stock investments } & 180,000 & &\\\text { Land } & 190,000 \\\text { Buildings } \quad \$ 230,000 &&\text { Common stock }&\$240,000\\\text { Less: Accumulated }&&\text { Retained earnings }&500,000\\\text { depreciation }\quad(60,000) &170,000&\text { Total stockholders' equity }&\$740,000\\\text { Trademarks } & 140,000&\text { Total liabilities and }\\\text { Total assets }&\$1,070,000&\text { stockholders' equity }&\$1,070,000\end{array}$

• A)$390,000
• B)$250,000
• C)$570,000
• D)$330,000

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Definitions:

Conservation of Energy

A fundamental principle of physics stating that the total energy in an isolated system remains constant, though it may change forms, such as from kinetic to potential energy.

Heat Lost

The amount of heat energy that escapes or is unintentionally transferred from a system to its surroundings.

Combustible Liquid

A liquid that can ignite easily or catch fire at temperatures at or above room temperature.

Gas Chromatograph

An analytical machine used for separating and analyzing compounds that can be vaporized without decomposition, typically used in chemical analysis.