1. A company has $1,301 in inventory, $4,728 in net fixed assets, $598 in accounts receivable,...

1. A company has $1,301 in inventory, $4,728 in net fixed assets, $598 in accounts receivable, $254 in cash, $538 in accounts payable, and $5,323 in equity. What is the company's long-term debt?

2. You find the following financial information about a company: net working capital = $1,113; fixed assets = $6,281; total assets = $8,638; and long-term debt = $4,645. What are the company's total liabilities?

14. (3)

The tax rates are as shown below:

Taxable Income	Tax Rate
$0 – 50,000	15	%
50,001 – 75,000	25	%
75,001 – 100,000	34	%
100,001 – 335,000	39	%

Your firm currently has taxable income of $80,800. How much additional tax will you owe if you increase your taxable income by $22,000?

Which one of the following statements is correct?

Multiple Choice

A general partnership is legally the same as a corporation.
Income from both sole proprietorships and partnerships that is taxable is treated as individual income.
Partnerships are the most complicated type of business to form.
All business organizations have bylaws.
Only firms organized as sole proprietorships have limited lives.

Solutions

Expert Solution

Answer to Question 1.
Total Current Assets = Cash + Accounts Receivable + Inventory
Total Current Assets = $254 + $598 + $1,301
Total Current Assets = $2,153

Total Assets = Total Current Assets + Net Fixed Assets
Total Assets = $2,153 + $4,728
Total Assets = $6,881

Total Assets = Total Liabilities and Equity
Total Liabilities and Equity = $6,881

Current Liabilities = Accounts Payable
Current Liabilities = $538

Total Liabilities and Equity = Current Liabilities + Long term debt + Equity
$6,881 = $538 + Long Term debt + $5,323
Long Term debt = $1,020

Answer to Question 2.
Total Assets = Total Current Assets + Net Fixed Assets
$8,638 = Total Current Assets + $6,281
Total Current Assets = $2,357

Net Working Capital = Total Current Assets – Total Current Liabilities
$1,113 = $2,357 - Total Current Liabilities
Total Current Liabilities = $1,244

Total Liabilities = Total Current Liabilities + Long Term Debt
Total Liabilities = $1,244 + $4,645
Total Liabilities = $5,889

jeff jeffy answered 1 year ago

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