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1.) The assets of Dallas & Associates consist entirely of current assets and net

ID: 2621455 • Letter: 1

Question

1.)  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 $750,000 and total common equity of $1.5 million.  The firm does not have accounts payable and accruals on its balance sheet.  The firm only finances with debt and common equity, so it has not preferred stock on its balance sheet.

a.  What is the amount of total liabilities and equity that appears on the firm

Explanation / Answer



3.)  Over the years, McLaughlin Corporations