Question

The following financial information is from ABC. All debt is due within one year unless stated otherwise. Retained Earnings $52,000 Supplies 37,000 Equipment 72,000 Accounts Receivable 8,600 Deferred Revenue 6,000 Accounts Payable 15,000 Common Stock 25,000 Notes Payable (due in 18 months) 35,000 Interest Payable 7,000 Cash 22,400 What is the amount of current liabilities

Answer 1

The correct answer is $28,000.

Step-by-step explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the current liabilities by using following formula:

Current liabilities = Deferred Revenue + Accounts Payable + Interest Payable

Where, Deferred Revenues = $6,000

Accounts payable = $15,000

Interest payable = $7,000

By putting the value we get,

So, Current liabilities = $6,000 + $15,000 + $7,000

= $28,000