If a business has cash of $2,500, accounts receivable of $6,125, inventory of $3,775, machinery and equipment worth $10,350, and accounts payable of $4,280, what is the total value of its assets?

If a business has cash of $2,500, accounts receivable of $6,125, inventory of $3,775, machinery and equipment worth $10,350, and accounts payable of $4,280, what is the total value of its assets?

• A. $22,750
• B. $17,200
• C. $15,470
• D. $18,050

Answer: (A)

To determine the total value of a business's assets, you sum all the asset categories listed. In this scenario, the assets include cash, accounts receivable, inventory, and machinery and equipment. - Cash is $2,500 - Accounts receivable is $6,125 - Inventory is $3,775 - Machinery and equipment is $10,350 When you add these values together: $2,500 (cash) + $6,125 (accounts receivable) + $3,775 (inventory) + $10,350 (machinery and equipment) = $22,750 The total of $22,750 reflects the complete value of the business's assets, showing the combined worth of liquid assets, inventories, and property/equipment. This calculation is essential for understanding the total financial standing of the business and important for decision-making processes regarding investments, loans, and overall financial management. Therefore, the total value of assets is accurately reflected as $22,750.

To determine the total value of a business's assets, you sum all the asset categories listed. In this scenario, the assets include cash, accounts receivable, inventory, and machinery and equipment.

• Cash is $2,500

• Accounts receivable is $6,125

• Inventory is $3,775

• Machinery and equipment is $10,350

When you add these values together:

$2,500 (cash) + $6,125 (accounts receivable) + $3,775 (inventory) + $10,350 (machinery and equipment) = $22,750

The total of $22,750 reflects the complete value of the business's assets, showing the combined worth of liquid assets, inventories, and property/equipment. This calculation is essential for understanding the total financial standing of the business and important for decision-making processes regarding investments, loans, and overall financial management.

Therefore, the total value of assets is accurately reflected as $22,750.