Reference no: EM132643711

Question - Getty Corporation started in business on January 1, 2020. Following are some of its transactions through March 31:

1/1/20 - The company borrowed $20,000 from a local bank and agreed to pay back $24,000 on January 1, 2022.

2/1/20 - Purchased insurance to cover six months for $1,800 in cash.

2/11/20 - Bought $7,000 of inventory on account. Getty will pay on April 10th.

3/06/20 - Sold $3,000 of inventory for $11,000, half in cash and half on account.

3/26/20 - Collected $2,000 of accounts receivable.

3/29/20 - Received utility bill for the first quarter of $1,400. This will be paid in April.

3/31/20 - Paid $3,200 in dividends.

Required - How much were Getty's current liabilities at March 31, 2020?

a. $8,400

b. $1,400

c. $8,900

d. $7,000

e. None of the above