The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. Assets Liabilities and EquityCurrent assets: Current liabilities:Cash $ 60 Accounts payable $ 240Accounts receivable (net) 170 Other liabilities 80Notes receivable 50 Total current liabilities 320Inventories 200 Long-term liabilities 110Prepaid expenses 25 Total liabilities 430Total current assets 505 Shareholders' equity:Plant assets (net) 255 Capital stock 150Retained earnings 180Total shareholders' equity 330Total assets $ 760 Total liabilities and equity $ 760Quick assets total: (A) $280 thousand. Correct

(B) $60 thousand.

(C) $230 thousand.

' (D) $305 thousand.

Question

Business

Sammy Simmons

18 August, 16:51

The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. Assets Liabilities and EquityCurrent assets: Current liabilities:Cash $ 60 Accounts payable $ 240Accounts receivable (net) 170 Other liabilities 80Notes receivable 50 Total current liabilities 320Inventories 200 Long-term liabilities 110Prepaid expenses 25 Total liabilities 430Total current assets 505 Shareholders' equity:Plant assets (net) 255 Capital stock 150Retained earnings 180Total shareholders' equity 330Total assets $ 760 Total liabilities and equity $ 760Quick assets total: (A) $280 thousand. Correct

(B) $60 thousand.

(C) $230 thousand.

' (D) $305 thousand.

+2

Answers (1)

Know the Answer?

Leah Potts · Answer 1

Total current assets = $60 + $170 + $50 + $200 + 25 = $505

Quick assets = Total current assets - Inventory

Quick assets = $505 - $200 = $305

The correct answer is D

Explanation:

Total current asset is the aggregate of cash, accounts receivable, notes receivable, inventory and prepaid expenses.

Quick asset is the difference between total current assets and inventory,