Question
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. The firm has total assets of $2.6 million and net plant and equipment equals $2.3 million. It has notes payable of $155,000, long-term debt of $749,000, 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?
Solutions
Expert Solution
a). Total Debts = Total Assets - Total Common Equity
Firm's Total Debts = $2.6 million - $1.55 million
=$1.05 million
b). Total Liabilities = Total Debts = $ 1.05 million
Total Equities = Total Common Equity = $1.55 million
c). Current Assets = Total Assets - Net Plant & Equipment
=$2.6 million - $2.3 million
= $0.3 million
d). Current Liabilities = Total Debts - Long-term Debts
=$1.05 million - $0.749 million
= $0.301 million
e). Accounts Payable and Accruals = Current Liabilities - Notes Payable
= $301,000 - $155,000
=$146,000
f). Net Working Capital = Current Assets - Current Liabilities
= $300,000 - $301,000
= -$1000
g). Net Operating Working Capital = Current Assets - Accounts Payable and Accruals
= $300,000 - $146,000
= $ 154,000
h). Monetary difference between your answers to part f and g = -$1000 - $154,000
= $155,000
The monetary Difference indicates = Notes Payable = $155,000
If you need any clarification regarding this solution, then you can ask in comments
If you like my answer then please Up-vote as it will be motivating.
jeff jeffy answered 1 year agoRelated Solutions
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 $2.7 million and net
plant and equipment equals $2.4 million. It has notes payable of
$160,000, long-term debt of $755,000, 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...
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. The firm has total
assets of $2.8 million and net plant and equipment equals $2.5
million. It has notes payable of $140,000, long-term debt of
$745,000, 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....
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. The firm has total
assets of $2.8 million and net plant and equipment equals $2.5
million. It has notes payable of $140,000, long-term debt of
$745,000, 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....
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 $2.7 million and net
plant and equipment equals $2.3 million. It has notes payable of
$150,000, long-term debt of $748,000, 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...
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 $2.7 million and net
plant and equipment equals $2.3 million. It has notes payable of
$140,000, 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...
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 $2.6 million and net
plant and equipment equals $2.2 million. It has notes payable of
$150,000, long-term debt of $758,000, and total common equity of
$1.5 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...
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. The firm has total
assets of $2.5 million and net plant and equipment equals $2.2
million. It has notes payable of $155,000, long-term debt of
$752,000, 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....
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 $2.8 million and net
plant and equipment equals $2.5 million. It has notes payable of
$155,000, long-term debt of $755,000, 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...
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 $2.6 million and net
plant and equipment equals $2.3 million. It has notes payable of
$145,000, long-term debt of $748,000, 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...
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 $2.7 million and net
plant and equipment equals $2.2 million. It has notes payable of
$155,000, long-term debt of $749,000, 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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Use the bond term's below to answer the question Maturity 7 years Coupon Rate 4% Face...
- What experience have you had with Organization Development or with Change Management? Describe the organization, the...
- 1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds...
- Given an array of positive integers a, your task is to calculate the sum of every...
- Define “culture.” Software is defined by the Merriam-Webster Dictionary as "the programs that run on a...
- In humans, hypotrichosis (sparse body hair) is a rare autosomal recessive condition. Let h = hypotrichosis...
- Increase all of the listing prices by 5% for all listings under $500,000 and 10% for...
ADVERTISEMENT