The assets of Dallas & Associates consist entirely of current assets and net pla

Question

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.6 million and net plant and equipment equals $2.1 million. It has notes payable of $155,000, long-term debt of $855,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet.

Write out your answers completely. For example, 25 million should be entered as 25,000,000.

What is the amount of total liabilities and equity that appears on the firm's balance sheet?

$   

What is the balance of current assets on the firm's balance sheet?

$   

What is the balance of current liabilities on the firm's balance sheet?

$   

What is the amount of accounts payable and accruals on its balance sheet? [Hint: Consider this as a single line item on the firm's balance sheet.]

$   

What is the firm's net working capital?

$   

What is the firm's net operating working capital?

$   

What is the monetary difference between your answers to part e and f?

$   

Explanation / Answer

Particulars Detail Amount Total Liability Equity +Liability+(Total Assets-Equity-Liability) 26,00,000.00 Current Assets Total Assets-Net Plant & Equipment     5,00,000.00 Current Liabilities Total Liabilities-Equity -Long term debt     1,95,000.00 Accounts Payable on the balance sheet Total Assets-Long Term debt-Equity-Notes Payable        40,000.00 Net Working Capital Current Assets-Current Liabilities     3,05,000.00 Net Operating Working Capital Current Assets-Current Laibilities-Note Payable     4,60,000.00 Monetary Difference Between WC and OWC WC-OWC     1,55,000.00 Particulars Amount Net Plant and Equipment 21,00,000.00 Net Current Assets     5,00,000.00 Total Assets 26,00,000.00 Notes Payable     1,55,000.00 Accounts Payable & acruals         40,000.00 Longterm Debt     8,55,000.00 Equity 15,50,000.00 Total Liabilities 26,00,000.00

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