telSBN-97813373952988snapshotld-9172008id 3593993548 C Secure htosjing MINDTAP h
ID: 2335047 • Letter: T
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telSBN-97813373952988snapshotld-9172008id 3593993548 C Secure htosjing MINDTAP h 03: End-of-Chapter Problems-Financial Statements, Cash Flow, and Taxes eBook The assets of Dallas& Associates consist entirely of current assets and net plant and equipment, and the firm has no excess common equity cash. The firm has total assets of 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, wnite out your answers completelx. For example, 25 milion should be entered as 25,000,000. Negative values, t any, should be indicated by a minus sign. Ro a. What is the company's total debt? b. What is the amount of total liablities and equity that appears on the firm's balance sheet? c. What is the bafance of current assets on the firm's balance sheet d. What is the balance of current labilities on the firm's balance sheet? e, what is the amount of accounts payable and accruals on its balance sheet, Oint: Consider this as a single ine item on the firm's balance sheet.) f. What is the firmn's net working capital? If your answer is zero, enter "". Negative value, if any, should be indicated by a minus sign. g. What is the firm's net operating working capital? h. What the monetary difference between your answers to part f and g? What does this difference indicate? Continue without sav O Type here to searchExplanation / Answer
a. Total debt = $ 8,93,000
(Long term debt + Total common equity)
b. Total Liability & Equity = $ 3000000
(Assets = Liabilities + Owner's Equity)
c. Current Asset = $ 400000
(Total asset - Net plant & equipment)
d. Current Liability = $ 797000
e. Accounts payables & Accruals = $ 657000
f. Net Working capital = $ -397000
(Current asset - Current liability)
g. Net operating working capital = $ -257000
(operating current asset - operating current liability)
or
(Cash + Accounts receivables + Inventories - (Accounts payables + accrued expense))
h.The difference between f & g is "notes payable" balance.
ie; $-397000-($-257000) = $140000
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