In: Finance
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.5 million and net plant and equipment equals $2
million. It has notes payable of $150,000, long-term debt of
$751,000, and total common equity of $1.45 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. Enter negative amounts, if any,
with a minus sign.
- What is the company's total debt?
$
- 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 f
and g?
$
What does this difference indicate?
-Select-The difference indicates Notes payable balanceThe
difference indicates Accounts payable balanceThe difference
indicates Current liabilities balance