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Mare Company's December 31, 2005 balance sheet reported the following current assets:

Cash $70,000
Accounts receivable 120,000
Inventories 60,000
Total $250,000

The analysis of the accounts disclosed that accounts receivable consisted of the followings:

Trade accounts $96,000
Allowance for uncollectible accounts (2,000)
Selling price of Mare's unsold goods out on consignment, at 130% of cost, not included in Mare's ending inventory 26,000
Total $120,000

Required:

What are the correct totals for cash, accounts receivable, and inventories at December 31, 2005?

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This posting provides solution to accounting question focusing on correct totals for cash, accounts receivable, and inventories for December 31, 2005.

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