Question

In: Finance

Determine the amount of long-term debt for ABC Co. using the following balance sheet information: cash...

Determine the amount of long-term debt for ABC Co. using the following balance sheet information: cash balance of $24,723, accounts payable of $95,591, common stock of $401,194, retained earnings of $500,129, inventory of $204,960, other assets equal to $76,133, net plant and equipment of $707,654, short-term notes payable of $30,000, and accounts receivable of $142,312.

Solutions

Expert Solution

Total assets=cash+inventory+other assets+net plant and equipment+AR

=24723+204960+76133+707,654+142,312

=$1155782

Total equity=common stock+retained earnings

=401,194+500,129

=$901323

Current liabilities=AP+short term notes payable

=95,591+30,000

=$125591

Total assets=Total liabilities+Total equity

Total liabilities=1155782-901323

=$254459

Total liabilities=Current liabilities+Long term debt

Long term debt=254459-125591

=$128868


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