1) The balance sheet for Stevenson Corporation reported the following: noncurren
ID: 2445545 • Letter: 1
Question
1)
The balance sheet for Stevenson Corporation reported the following: noncurrent assets, $240,000; total assets, $360,000; noncurrent liabilities, $176,000; total stockholders’ equity, $94,000.
2)
What is the present value of $500,000 to be paid in 10 years with an interest rate of 8 percent? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
The balance sheet for Stevenson Corporation reported the following: noncurrent assets, $240,000; total assets, $360,000; noncurrent liabilities, $176,000; total stockholders’ equity, $94,000.
Explanation / Answer
Computation of Working capital
Working capital = current assets - Current liabilities
Total assets = Current assets + Non current assets
$360000 = Current assets + $240000
Current assets = 360000 - 240000
Current assets = 120000
Total assets = Total liabilities
360000 = 360000
Total liabilities = Current liabilities + non current liabilities + total stockholders equity
360000 = Current liabilities + 176000 + 94000
Current liabilities = 360000 - 176000 - 94000
Current liabilities = 360000 - 270000 = 90000
Working capital = 120000 - 90000 = 30000.
2. $500000 * 6.7101 = 3355050.
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