Management Accounting: Calculation of Current Assets, Liabilities, Stockholders' Equity, and More

MANGEMENT ACCOUNTING
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For A
Total current assets = Cash +contracts receivables + other assets
Contracts receivables = Total current assets – Cash - Other assets
¿ 893,868−225971−162847=$ 505,050
Some of the customers are given products or services on credit and these lead to contracts
receivables. Thus, this refers to the amount pertaining to the contract that ought to be received
from the clients for the services already provided (Damodaran, 2015).
For B
Total assets = Total current assets + Equipment
Equipment = Total assets - Total current assets ¿ 1180660−893868=$ 286,792
One of the non-current assets refers to equipment, This is a non-current asset since unlike current
assets the benefits from these assets are realised over several years of their useful life. Equipment
would refer to the machines and other tools used in the fulfilment of the contract (Arnold, 2015).
For C
Total current liabilities = Accounts payable +Line of credit +Accrued expenses +Income tax
payable +Current portion of notes payable +Deferred income taxes
Accounts payable = Total current liabilities-(Line of credit +Accrued expenses +Income tax
payable +Current portion of notes payable +Deferred income taxes)
¿ 571679−(85000+72495+ 46660+31747+ 78460)=$ 257,335
Businesses typically take raw materials and other supplies on credit which implies that the
payment for these would be made at a later date. Accounts payable represents the sum total of all
such payments which are due to the suppliers and creditors on a given data (Northington, 2015).
For D
Total stockholders’ equity = Common stock +Additional paid in capital +Retained earnings
Retained earnings ¿ 436496 – (62000 +63862)=$ 310,634
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