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 $2.6 million and net plant and equipment equals $2.2 million. It has notes payable of $140,000, 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 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.
Conslidated Balance sheet of Dallas & Associates
Assets | Liabilities | ||
$ | $ | ||
Non-Current Assets | Non Current Liabilties | ||
Plant & Equipment | 2200000 | Equity | 1450000 |
Long-Term Debt | 755000 | ||
Current Asset( Balancing Figure*) | 400000 | Current Liabilities | |
Notes Payable | 140000 | ||
Acconts Payable & Accruals(Balancing Figure) | 255000 | ||
Total Assets | 2600000 | Total Liabilities | 2600000 |
*Current Assets= Total Assets - Non current assets
a) Total Debt = Long Term Debt+Notes payable + current liabilities
= 755000+140000+255000
= $1150000
b) Total Liabilities = Current Liabilities+ Non Cuurent Liabilites
= 395000+2205000
=$2600000
c)By looking at the balance sheet
Current Assets= Total Assets - Non current assets
= 2600000- 2200000
=$400000
d)Balance of current liabilities= Total Assets - (Equity+ Notes Payable+Long Term Debt)
= 2600000- (1450000+755000+140000)
=2600000-2345000
=$255000