Certainly! Let's break this down step by step to determine the total amount of the company's liabilities.
1. Identify Current Liabilities: The company has [tex]$120,000 in current liabilities. Current liabilities typically include obligations that are due within one year, such as accounts payable, short-term loans, and other similar debts.
2. Identify Noncurrent Liabilities: The company has $[/tex]200,000 in noncurrent liabilities. Noncurrent liabilities, also known as long-term liabilities, are obligations that are due beyond one year. These can include long-term loans, bonds payable, and other long-term debts.
3. Calculate Total Liabilities: To find the total amount of liabilities, you need to add the current liabilities to the noncurrent liabilities.
[tex]\[
\text{Total Liabilities} = \text{Current Liabilities} + \text{Noncurrent Liabilities}
\][/tex]
Plugging in the values:
[tex]\[
\text{Total Liabilities} = \$120,000 + \$200,000
\][/tex]
[tex]\[
\text{Total Liabilities} = \$320,000
\][/tex]
Hence, the total amount of the company's liabilities is [tex]$320,000.
The correct answer is:
A. $[/tex]320,000
