Answer (C) is correct . Current assets consist of cash, certain marketable securities, receivables, inventories, and prepaid expenses. Adding these elements together produces a total of $407,500 ($28,000 cash + $110,000 receivables + $250,000 inventories + $19,500 prepaid insurance).
Answer (A) is incorrect because Deducting accounts payable from the current assets results in the amount of working capital, rather than the total of current assets.
Answer (B) is incorrect because It fails to include prepaid insurance in the total.
Answer (D) is incorrect because It erroneously includes accounts payable.
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What amount of current assets should Perry Mansfield include in its statement of financial position at December 31?