NEED HELP QUICK Problem 3-1 Balance Sheet The assets of Dallas & Associates cons
ID: 2720966 • Letter: N
Question
NEED HELP QUICK
Problem 3-1
Balance Sheet
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.7 million and net plant and equipment equals $2.2 million. It has notes payable of $150,000, long-term debt of $745,000, and total common equity of $1.55 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.
What is the company's total debt?
$
What is the amount of total liabilities and equity that appears on the firm's balance sheet?
$
What is the balance of current assets on the firm's balance sheet?
$
What is the balance of current liabilities on the firm's balance sheet?
$
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.]
$
What is the firm's net working capital?
$
What is the firm's net operating working capital?
$
What is the monetary difference between your answers to part f and g?
$
Explanation / Answer
What is the balance of current assets on the firm's balance sheet?
CURRENT ASSETS = Total Assets - net plant and equipment =2.7million -2.2million = 0.5 Million = $50,00,000
What is the balance of current liabilities on the firm's balance sheet?
CURRENT LIABILITIES = Total Liablities and Common Stock - long Term debt - total common equity =
= 27,00,000 - 7,45,000 - 15,50,000 = 4,05,000
What is the amount of accounts payable and accruals on its balance sheet?
Current Liabilities - Notes Payable = 4,05,000 - 1,50,000 = $2,55,000
What is the company's total debt?
Current Liabilities + Long term debt = 4,05,000 + 7,45,000 = 11,50,000
What is the amount of total liabilities and equity that appears on the firm's balance sheet
Company's total debt + total common equity = 11,50,000 + 15,50,000 = $27,00,000
What is the firm's net working capital?
Current Assets - Current Laiblities = $50,00,000 - 4,05,000 = $45,95,000
What is the firm's net operating working capital?
Current Operating Assets Current Operating Liabilities = $50,00,000 - 2,55,000 =$ 47,45,000
Current Operating Liabilities= Accounts Payable + Accrued Expenses = $2,55,000
What is the monetary difference between your answers to part f and g
net operating working capital - net working capital =47,45,000 - 45,95,000= $1,50,000
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