What is the total current assets of the trader based on the information provided?
The total current assets can be calculated by adding up the following items:
Motor van: $3000
Prepaid rates: $500
Debtors: $3000
Stock: $700
Accrued wages: $75
Equipment: $500
Therefore, the total current assets of the trader would be $3000 + $500 + $3000 + $700 + $75 + $500 = $4200.
Explanation:
Total Current Assets Calculation:
To calculate the total current assets of a trader, we need to consider all the assets that are expected to be converted into cash within one year. In this case, we have the following assets:
1. Motor van: $3000
2. Prepaid rates: $500
3. Debtors: $3000
4. Stock: $700
5. Accrued wages: $75
6. Equipment: $500
To find the total current assets, we simply add up all these amounts:
$3000 + $500 + $3000 + $700 + $75 + $500 = $4200
Therefore, the total current assets of the trader based on the given information is $4200.