Question

In: Finance

BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...

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.

  1. What is the company's total debt?
      $

  2. What is the amount of total liabilities and equity that appears on the firm's balance sheet?
    $  

  3. What is the balance of current assets on the firm's balance sheet?
    $  

  4. What is the balance of current liabilities on the firm's balance sheet?
    $  

  5. 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.]
    $  

  6. What is the firm's net working capital?
    $  

  7. What is the firm's net operating working capital?
    $  

  8. What is the monetary difference between your answers to part f and g?
    $  

    What does this difference indicate?

Solutions

Expert Solution

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


Related Solutions

BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $3 million and net plant and equipment equals $2.6 million. It has notes payable of $150,000, long-term debt of $746,000, 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...
Balance Sheet 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 million. It has long-term debt of $750,000, and total common equity of $1.5 million. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet. a. What is the amount of total liabilities and equity that appears on the...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
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 The assets of Dallas & Associates consist entirely of current assets and net plant...
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 $155,000, long-term debt of $746,000, 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...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $5 million and net plant and equipment equals $3.5 million. It has notes payable of $500,000, long-term debt of $2,000,000, and total common equity of $1.75 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...
BALANCE SHEET 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 $140,000, long-term debt of $745,000, 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...
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 $145,000, long-term debt of $750,000, 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...
BALANCE SHEET 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 million. It has notes payable of $150,000, long-term debt of $751,000, 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...
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....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT