NAFARA AND SONS Balance Sheet items as at 31st December, 1987.Capital ₦74480Creditors ₦15875Prepaid expenses ₦580Motor vehicles ₦34750Furniture ₦35850Accrue...
Question 1 Report
NAFARA AND SONS Balance Sheet items as at 31st December, 1987.Capital ₦74480Creditors ₦15875Prepaid expenses ₦580Motor vehicles ₦34750Furniture ₦35850Accrued expenses ₦645Stock ₦8100Cash balances ₦9911Debtors ₦1809
Compute the value of current assets?
Answer Details
To compute the value of current assets, we need to identify which items in the balance sheet are considered current assets. Current assets are assets that are expected to be converted to cash within one year or one operating cycle. Examples of current assets include cash, debtors, and stock.
From the given balance sheet, the current assets are:
- Prepaid expenses: ₦580
- Stock: ₦8100
- Cash balances: ₦9911
- Debtors: ₦1809
To get the total current assets, we add these items:
₦580 + ₦8100 + ₦9911 + ₦1809 = ₦20400
Therefore, the value of current assets is ₦20400.
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