Home
/
Business
/
The following items as extracted from the statement of financial position for PLG Plumbing and Heating for the period ended 2022. & (E) }(l) Plant and equipment & 2,500 Trade payables & 2,800 Short-term borrowings & 2,000 Overdraft & 600 Inventories & 4,500 Property & 30,000 Long-term borrowings & 5,100 Mortgage & 18,000 Trade receivables & 1,800 What is the total current liabilities for the period?

Question

The following items as extracted from the statement of financial position for PLG Plumbing and Heating for the period ended 2022.

 & (E) 
 }(l)
Plant and 
equipment
 & 2,500 
 Trade payables & 2,800 
 
Short-term 
borrowings
 & 2,000 
 Overdraft & 600 
 Inventories & 4,500 
 Property & 30,000 
 
Long-term 
borrowings
 & 5,100 
 Mortgage & 18,000 
 Trade receivables & 1,800 


What is the total current liabilities for the period?

The following items as extracted from the statement of financial position for PLG Plumbing and Heating for the period ended 2022. & (E) }(l) Plant and equipment & 2,500 Trade payables & 2,800 Short-term borrowings & 2,000 Overdraft & 600 Inventories & 4,500 Property & 30,000 Long-term borrowings & 5,100 Mortgage & 18,000 Trade receivables & 1,800 What is the total current liabilities for the period?

expert verifiedVerification of experts

Answer

4.4238 Voting
avatar
AuroraVeteran · Tutor for 9 years

Answer

From the detailed calculation, the total current liabilities for the period is \( £5,400 \).

Explain

## Step 1: Identify the Current Liabilities<br />In view of the financial statement, the current liabilities of PLG Plumbing and Heating during the period would be the liabilities it would have to settle within one year of the ending balance sheet date as these are considered short-term debts and obligations. Recognisable as current liabilities are: Trade payables, Short-term borrowings and Overdraft.<br /><br />## Step 2: Calculate the Total Current Liabilities<br />To work out the 'total current liabilities' for the period, add up all of the current liabilities together. This can be denoted as<br /><br />### \( Total\ Current\ Liabilities= Trade\ Payable + Short-term\ Borrowings + Overdraft \)<br />In place of the represented figures we have:<br />### \( Total\ Current\ Liabilities= £2,800 + £2,000 + £600 \)
Click to rate:

Hot Questions

More x