The assets of Dallas & Associates consist $2.3 million. It has notes payable of

Question

The assets of Dallas & Associates consist $2.3 million. It has notes payable of $140,000, long-term debt of $747,000, and total common equity of $1.45 million. The fim does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so t has no preferred stock on its balance shoet. Write out your answers completely. For example, 25 million should be entered as 25,000,000. a. What is the company's total debt? entircly of current assets and net plant and equipment. The fem has total assets of $2.7 milion and net plant and equipment equals 887,00 s 2,700 s 400,00 b. What is the amount of total iabiities and equity that appears on the firms balance sheet? c. What is the balance of current assets on the firm's balance sheet? d. What is the balance of current liablities on the firm's balance sheet? 510,00 # e. What is the amount of accounts payable and accruals on its balance sheet? (int: Consider this as a single ine tem on the firm's balance sheet.) 370,00 f. What is the firm's net working capital? s110,00 g. What is the firm's net operating working capital?

Explanation / Answer

a) Companies total debt is given by the summation of notes payable as well as long term debt. In this case, total debt will be: $140,000+$747,000 which will give the value of $887,000.

b) The value of total liabilities and equity will be the summation of notes payable, long term debt and common equity.

Hence adding all of them will give the value as $2.7 million.

c) Firm has total assets of $2.7 million out of which $2.3 million is fixed asset. hence the portion of current asset is $2.7-$2.3 which will give the value as $40,000.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.