The following trial balance of jb company at december 31, year five, has been adjusted except for income taxes. the income tax rate is 30%.
dr cr
accounts receivable, net $725,000
accounts payable 250,000
accumulated depreciation 125,000
cash 185,000
contributed capital 650,000
expenses 3,750,000
goodwill 140,000
prepaid taxes 225,000
property, plant, and equipment 850,000
retained earnings, 1/1/year five 350,000
revenues 4,500,000
5,875,000 5,875,000
during year five, estimated tax payments of $225,000 were paid and debited to prepaid taxes. there were no differences between financial statement and taxable income for year five.
included in accounts receivable is $400,000 due from a loyal customer. special terms were granted to this customer to make payments of $100,000 semi-annually every march 1 and september 1.
in jb company's december 31, year five balance sheet, what amount should be reported as current assets?
a) 710,000
b) 910,000
c) 935,000
d) 1,135,000