Hanson Construction has an operating cycle of nine months. On December 31, 2011, Hanson has the following assets and liabilities:
a. A note receivable in the amount of $1,200 to be collected in six months.
b. Cash totaling $475.
c. Accounts payable totaling $1,800, all of which will be paid within two months.
d. Accounts receivable totaling $12,000, including an account for $8,000 that will be paid in two months and an account for $4,000 that will be paid in 18 months.
e. Construction supplies costing $8,800, all of which will be used in construction within the next 12 months.
f. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulated.
g. A note payable to the bank in the amount of $7,600 is to be paid within the next year.
1. Calculate the amounts of current assets and current liabilities reported on Hanson’s balance sheet at December 31, 2011.
2. Comment on Hanson’s liquidity.

  • CreatedSeptember 22, 2015
  • Files Included
Post your question