In: Finance
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment,...
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment, and the firm has no
excess cash. The firm has total assets of $2.5 million and net
plant and equipment equals $2.2 million. It has notes payable of
$150,000, long-term debt of $752,000, 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. Negative values, if any, should be
indicated by a minus sign. Round your answers to the nearest
dollar, if necessary.
- 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? If your answer is zero,
enter "0". Negative value, if any, should be indicated by a minus
sign.
$
- 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 balance.The
difference indicates Accounts payable balance.The difference
indicates Current liabilities balance.Item 9