Balance Sheet The assets of Dallas & Associates consist entirely of current asse

Question

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 $2.5 million. It has notes payable of $145,000, 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.

Write out your answers completely. For example, 25 million should be entered as 25,000,000.

Explanation / Answer

What is the amount of total liabilities and equity that appears on the firm'sbalancesheet?
$ 1.55 + 140 + 748 = 2,438,000

What is the balance of current assets on the firm'sbalance sheet?
$ 300,000 or 2.4-2.1

What is the balance ofcurrent liabilitieson the firm's balance sheet?
$ 140,000

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.]
$ 0 stated in problem, if read is very easy to see.

What is the firm's net working capital?
$ ca - cl = 300,000 - 140,000 = 160

What is the firm's net operating working capital?
$ 300,000

What is the monetary difference between your answers in e & f
the fact that there are not any non interest bearing notes payable.

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