Reference no: EM132546435

Question - For purposes of stating the working capital of May Trading on December 31, 2019, the following data are submitted:

Cash on hand and in bank, net P100,000 bank overdraft P560,000

Petty cash (unreplenished petty cash expenses, P5,000) 10,000

Notes receivable 500,000

Accounts receivable, net of accounts with credit balance of P100,000

1,100,000

Merchandise Inventory, including goods held on consignment of P190,000

1,480,000

Prepaid expenses 90,000

Total current assets P3,740,000

Accounts Payable, net of accounts with debit balance of P50,000. P600,000

Notes Payable (due annually at P1,000,000 payable every May 31) 2,000,000

Accrued expenses 80,000

Total current liabilities P2,680,000

Required - How much total current liabilities should May Trading present in its statement of financial position on December 31, 2019?