In: Finance
BALANCE SHEET
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.9 million and net plant and equipment equals $2.6 million. It has notes payable of $155,000, long-term debt of $747,000, 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. 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 balanceItem 9
Balance Sheet | ||||
Current Assets | 300000 | Notes Payable | 155000 | |
Net Plant and Equipments | 2600000 | Acoounts Payable and accruals | 448000 | |
Current Liabilities | 603000 | |||
Long term debt | 747000 | |||
Total Liabilities | 1350000 | |||
Total Common Equity | 1550000 | |||
Total Assets | 2900000 | Total Liabilities & Total Common Equity | 2900000 |
a. Total Debt = Short term debt + Long term debt
Total Debt = 155,000 + 747,000 = 902,000
b.Total Liability and Equity
Total Liability = Current Liabilities and Long term debt = 603,000 + 747,000 = 1,350,000
Total Equity = 1,550,000
Total Liability and Equity = 2,900,000?, will always be equal to the Total Assets.
c. Current Assets = Total Assets - Net Plant and Equipment
Current Assets = 2,900,000 - 2,600,000 = 3,00,000
d. Current Liabilities = Notes Payable + Acounts Payable and accruals
Accounts Payable and accruals? = Total Liabilities and Common equity - Notes Payable - Long term debt - Total common Equity
Accounts Payable and accruals? = 2,900,000 -155,000 - 747,000 - 1,550,000 = 448,000
Current Liabilities = Notes Payable + Accounts Payable and accruals?
Current Liabilities = 155,000 + 448,000 = 603,000
e. Accounts Payable and accruals? = Total Liabilities and Common equity - Notes Payable - Long term debt - Total common Equity
Accounts Payable and accruals? = 2,900,000 -155,000 - 747,000 - 1,550,000 = 448,000
f. Net Working Capital = Current Assets - Current Liabilties = 300,000 - 603,000 = -303,000
g. Net Operating Working Capital = Current Assets - Accounts Payables and Accruals = 300,00?0 - 448,000 = 148,000
h. Difference = Net Working Capita?l - Net Operating Working Capital? = 303,000 - 148,000 = 155,000
i. The difference indicates Notes Payable balance