The Following Financial Information Is from Cook Company What Is the Amount of Long-Term Assets Assuming the Accounts

question 64

Multiple Choice

The following financial information is from Cook Company: $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 55,000 \\\hline \text { Land } & \$ 90,000 \\\hline \text { Inventory } & \$ 10,500 \\\hline \text { Accounts Receivable } & \$ 7,500 \\\hline \text { Equipment } & \$ 8,000 \\\hline \text { Unearned Revenue } & \$ 58,500 \\\hline \text { Short-term Investments } & \$ 20,000 \\\hline \text { Notes Receivable (due in 8 months) } & \$ 45,500 \\\hline \text { Interest Payable } & \$ 2,000 \\\hline \text { Patents } & \$ 75,000 \\\hline\end{array}$$ What is the amount of long-term assets assuming the accounts above reflect normal activity?

• A) $342,500.
• B) $173,000.
• C) $273,500.
• D) $98,000.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a given market.

Total Revenue

The total income received by a firm from selling its goods or services before any costs or expenses are subtracted.

Profitable Level

The point at which total revenues exceed total costs, resulting in financial gain for a business or individual.

Market Price

The ongoing price point for acquiring or disposing of goods or services within a competitive economic market.