Hendrickson Corporation's trial balance for July 31, the end of its fiscal year, included the following accounts:

Accounts Receivable
$25,000
Inventories
60,000
Copyright
20,000
Investments
45,000
Prepaid Insurance
9,000
Note receivable, due in two years
75,000
Cash in Bank
5,500

Investments are treasury bills that were purchased in May and mature on August 15. Prepaid insurance is a three year policy that was purchased on July 31.

The amount that should be classified as current assets in the July 31 balance sheet is ________.

A) $144,500
B) $138,500
C) $93,500
D) $213,500

Answer: B

Business

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