In: Accounting
The assets of Event Management Limited (“EML”) consist entirely of current assets and net furniture and equipment. EML has total assets of $15 million and net furniture and equipment equals $12 million.
EML has current liabilities of notes payable of $0.9 million, accounts payable and accruals.
EML has long term debt of $4.5 million. EML has common equity of $6 million. EML only finances with debt and common equity, so it has no preferred stock.
Answer to question
a. | amount of current assets on EML’s balance sheet | $ 3.00 |
b. | EML’s total debt | $ 9.00 |
c. | amount of accounts payable and accruals on EML’s balance sheet | $ 3.60 |
d. | EML’s net operating working capital | $ -1.50 |
Current Assest | $ 3.00 | |
Less Current Liabilities | $ 4.50 | |
e. | Difference in amount between net working capital and net operating working capital | |
Net operating working capital | $ -1.50 | |
Current Assest | $ 3.00 | |
Less Current Liabilities | $ 4.50 | |
Net working capital | $ 6.00 | |
Total assets | $ 15.00 | |
Total liabilities | $ 9.00 | |
Working | ||
Non Current Assets | Amount in Million | |
furniture and equipment | $ 12.00 | |
Current Assest | ||
Current Assest | $ 3.00 | |
total assets | $ 15.00 | |
Equity and Liability | ||
Current liabilities | $ 0.90 | |
accounts payable and accruals. | $ 3.60 | |
EML has long term debt | $ 4.50 | |
Equity | $ 6.00 | |
Total Equity and Liability | $ 15.00 |