Abunda Company provided the following data at year-end: Cash P2,000,000 Accounts receivable - P3,000,000 Inventory - P1,900,000 Prepaid expenses - 100,000 Accounts payable - P2,450,000 Interest payable - P150,000 Income tax payable - P300,000 Mortgage payable, due in four annual installments - P2,000,000 Analysis of Cash: Cash in bank- P1,500,000 Employee IOU - P100,000 Customer's check marked as "Insufficient Fund" - P400,000 Analysis of Accounts Receivable: Customers' debit balances - P1,800,000 Advances to subsidiary - P900,000 Advances to suppliers - P500,000 Allowance for doubtful accounts - (P200,000) What amount should be reported as total current liabilities?

Abunda Company provided the following data at year-end: Cash P2,000,000 Accounts receivable - P3,000,000 Inventory - P1,900,000 Prepaid expenses - 100,000 Accounts payable - P2,450,000 Interest payable - P150,000 Income tax payable - P300,000 Mortgage payable, due in four annual installments - P2,000,000 Analysis of Cash: Cash in bank- P1,500,000 Employee IOU - P100,000 Customer's check marked as "Insufficient Fund" - P400,000 Analysis of Accounts Receivable: Customers' debit balances - P1,800,000 Advances to subsidiary - P900,000 Advances to suppliers - P500,000 Allowance for doubtful accounts - (P200,000) What amount should be reported as total current liabilities?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 6BCRQ

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At year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80 comma 000$80,000, merchandise inventory of $ 24 comma 000$24,000, and prepaid expenses totaling $ 5 comma 900$5,900. Liabilities of $ 64 comma 000$64,000 must be paid next year. Assume accounts receivable had a beginning balance of $ 40 comma 000$40,000 and net credit sales for the current year totaled $ 480 comma 000$480,000. How many days did it take StickStick to collect its average level of receivables?
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