Question: Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year:
| Total assets |
$ |
530,000 |
| Total noncurrent assets |
|
362,000 |
| Liabilities: |
|
|
| Notes payable (8%, due in 5 years) |
|
15,000 |
| Accounts payable |
|
56,000 |
| Income taxes payable |
|
14,000 |
| Liability for withholding taxes |
|
3,000 |
| Rent revenue collected in advance |
|
7,000 |
| Bonds payable (due in 15 years) |
|
90,000 |
| Wages payable |
|
7,000 |
| Property taxes payable |
|
3,000 |
| Note payable (10%, due in 6 months) |
|
12,000 |
| Interest payable |
|
400 |
| Common stock |
|
100,000 |
1-a. What is the amount of current liabilities?
1-b. Compute working capital.
2. Would your computation be different if the company reported $250,000 worth of contingent liabilities in the notes to its financial statements?