Exercise $1-40$

Current Assets and Current Liabilities

Hanson Construction has an operating cycle of nine months. On December $31,2022,$ 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 totalling $$475.$

c$.$ Accounts payable totalling $$1,800,$ all of which will be paid within two months.

d$.$ Accounts receivable totalling $$12,000,$ including an account for $$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.

Required:

Prepare the current asset and current liability portions of Hanson's statement of financial position at December $31,2022.$

Hanson Construction

Partial Statement of Financial Position

December $31,2022$

Current assets:

Total current assets

Current liabilities:

$

$$

$

$