Question
In: Finance
Joseph Moore, the CFO of Carla Vista Automotive, Inc., is putting together this year's financial statements....
Joseph Moore, the CFO of Carla Vista Automotive, Inc., is
putting together this year's financial statements. He has gathered
the following balance sheet information: The firm had a cash
balance of $23,015, accounts payable of $163,257, common stock of
$311,300, retained earnings of $512,159, inventory of $213,000,
goodwill and other assets equal to $78,656, net plant and equipment
of $714,100, and short-term notes payable of $21,115. It also had
accounts receivable of $141,258 and other current assets of
$11,223. How much long-term debt does Carla Vista Automotive
have?
| Long-term debt | $ |
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Expert Solution
Answer :
As per the basic accounting equation
Total Assets – Total Liabilities = Stockholder’s equity
Elaborating the same we have
Current Assets + Net Plant & equipment + Goodwill and other assets - Current Liabilities – Long term debt = Common stock + Retained earnings
As per the information given in the question we have
Current Assets = Cash + Accounts Receivable + Inventory + Other Current assets
= $ 23,015 + $ 141,258 + $ 213,000 + $ 11,223 = $ 388,496
Thus the current assets = $ 388,496
Net Plant & equipment = $ 714,100 ; Goodwill and other assets = $ 78,656 ;
Current Liabilities = Accounts Payable + Short term Notes Payable
= $ 163,257 + $ 21,115 = $ 184,372
Common stock = $ 311,300 ; Retained Earnings = $ 512,159
Applying the above information in the Accounting equation we have
$ 388,496 + $ 714,100 + $ 78,656 - $ 184,372 - Long term debt = $ 311,300 + $ 512,159
$ 996,880 – Long term debt = $ 823,459
$ 996,880 - $ 823,459 = Long Term Debt
Long Term Debt = $ 996,880 - $ 823,459
Long Term Debt = $ 173,421
Therefore,
Long Term Debt balance of Carla Vista Automotive = $ 173,421.
jeff jeffy answered 1 year agoRelated Solutions
Joseph Moore, the CFO of Carla Vista Automotive, Inc., is putting together this year's financial statements....
Joseph Moore, the CFO of Carla Vista Automotive, Inc., is
putting together this year's financial statements. He has gathered
the following balance sheet information: The firm had a cash
balance of $23,015, accounts payable of $163,257, common stock of
$311,300, retained earnings of $512,159, inventory of $213,000,
goodwill and other assets equal to $78,656, net plant and equipment
of $714,100, and short-term notes payable of $21,115. It also had
accounts receivable of $141,258 and other current assets of
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1. The chief financial officer (CFO) of Carla Vista Corporation requested that the accounting department prepare...
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balance sheet on December 30, 2022, so that the CFO could get an
idea of how the company stood. He knows that certain debt
agreements with its creditors require the company to maintain a
current ratio of at least 2:1. The preliminary balance sheet is as
follows.
Carla Vista Corp.
Balance Sheet
December 30, 2022
Current assets
Current liabilities
Cash
$27,000
Accounts...
Here are the comparative income statements of Carla Vista Corporation. CARLA VISTA CORPORATION Comparative Income Statement...
Here are the comparative income statements of Carla Vista
Corporation.
CARLA VISTA CORPORATION
Comparative Income Statement
For the Years Ended December 31
2022
2021
Net sales
$637,500
$555,200
Cost of goods sold
454,100
418,600
Gross Profit
183,400
136,600
Operating expenses
74,500
48,700
Net income
$ 108,900
$ 87,900
(a)
Prepare a horizontal analysis of the income statement data for
Carla Vista Corporation, using 2021 as a base. (If
amount and percentage are a decrease show the numbers as negative,
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The comparative unclassified statement of financial position for Carla Vista Ltd. follows: CARLA VISTA LTD. Statement...
The comparative unclassified statement of financial position for
Carla Vista Ltd. follows:
CARLA VISTA
LTD.
Statement of Financial Position
December 31
Assets
2018
2017
Cash
$55,000
$28,000
Accounts receivable
81,000
63,000
Inventory
183,000
203,500
Long-term investments
80,000
120,000
Equipment
285,000
156,000
Accumulated depreciation
(61,000
)
(37,000
)
Total assets
$623,000
$533,500
Liabilities and Shareholders’
Equity
Accounts payable
$32,000
$ 45,000
Bank loan payable
153,000
172,500
Common shares
219,000
176,000
Retained earnings
219,000
140,000
Total liabilities and shareholders’
equity
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$533,500...
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Margaret has compiled the following financial information as of
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Service revenues during 2022
$246,000
Fair value of equipment
$168,000
Accounts payable
13,200
Notes payable
72,000
Cash on hand
27,600
Expenses during 2022
180,000
Original cost of equipment
126,600
Accounts receivable
21,000
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Determine Margaret Moore’s net income from Carla Vista Park for
2022.
(b)
Prepare a...
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20Y7
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$3,057,970
$2,817,460
Cost of goods sold
(1,131,500)
(1,040,980)
Gross profit
$1,926,470
$1,776,480
Selling expenses
$(688,120)
$(821,780)
Administrative expenses
(586,180)
(482,630)
Total operating expenses
(1,274,300)
(1,304,410)
Operating income
$652,170
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For the Years Ended December 31, 20Y8 and 20Y7
20Y8
20Y7
Sales
$3,057,970
$2,817,460
Cost of goods sold
(1,131,500)
(1,040,980)
Gross profit
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Selling expenses
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Administrative expenses
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(482,630)
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(1,274,300)
(1,304,410)
Operating income
$652,170
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2022
2021
Net sales
$610,300
$540,600
Cost of goods sold
448,800
426,200
Gross Profit
161,500
114,400
Operating expenses
76,400
48,100
Net income
$ 85,100
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(a)Prepare a horizontal analysis of the income statement data for Carla Vista Corporation, using 2021 as...
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