1. Current Assets and Current Liabilities

   Hanson Construction has an operating cycle of 9 months. On December 31, 2019, Hanson has the following assets and liabilities:

   1. A note receivable in the amount of $1,200 to be collected in 6 months
   2. Cash totaling $460
   3. Accounts payable totaling $2,100, all of which will be paid within 2 months
   4. Accounts receivable totaling $12,000, including an account for $8,000 that will be paid in 2 months and an account for $4,000 that will be paid in 18 months
   5. Construction supplies costing $8,800, all of which will be used in construction within the next 12 months
   6. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulated
   7. A note payable to the bank in the amount of $7,600 is to be paid within the next year

   Required:

   1. Calculate the amounts of current assets and current liabilities reported on Hanson's balance sheet at December 31, 2019.

   Total current assets	$
   Total current liabilities	$

   2. Conceptual Connection: Comment on Hanson's liquidity.

   Because the exceed the , it appears that Hanson to pay its debts that become due within the next year.