Question

Diane Corporation is preparing its year-end balance sheet. Thecompany records show the following selected amounts at the end ofthe year:

Total assets	$	590,000
Total noncurrent assets		350,000
Liabilities:
Notes payable (8%, due in 5years)		23,000
Accounts payable		55,000
Income taxes payable		11,000
Liability for withholdingtaxes		4,000
Rent revenue collected inadvance		9,000
Bonds payable (due in 15years)		105,000
Wages payable		9,000
Property taxes payable		5,000
Note payable (10%, due in 6months)		14,000
Interest payable		600
Common stock		180,000

Required:

1-a. What is the amount of currentliabilities?

1-b. Compute working capital.

2. Would your computation be different if thecompany reported $300,000 worth of contingent liabilities in thenotes to its financial statements?

	Yes
	No