Question

Josey Doakes was reading the balance sheet of Gogoldze Inc. when she spilled grape juice on it. After the juice spill, the balance sheet looked like this:($ millions)      12/31/2015Cash          90Accounts Receivable         210Inventory         410Other Current Assets      grapeCurrent Assets      juiceNet Property, Plant, & Equipment      1,080Total Assets      grape          juiceAccounts Payable         115Other Current Liabilities         260Current Liabilities         375Long-term Liabilities         860Common Stock          50Additional Paid-in-Capital         300Retained Earnings         285Total Liabilities and SE      1,870What was Gogoldze Inc.'s Other Current Assets at 12/31/2015?a. $710b. $120c. $370d. $80e. $790

Answer 1

Answer:

d. $80

Explanation:

The computation of the other current assets is shown below:

= Total assets - Net Property, Plant, & Equipment - cash - Accounts Receivable - inventory - Other Current Assets

= $1,870 - $1,080 - $90 - $210 - $410 - Other Current Assets

= $80 - Other Current Assets

So, the other current assets would be $80

And, we know that

Total assets = Total liabilities + total stockholder equity

So,

Total assets = $1,870