The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.9 million and net plant and equipment equals $2.5 million. It has notes payable of $140,000, long-term debt of $745,000, 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. Negative values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar, if necessary.
a. what is the company's total debt? $___
b. what is the amount of total liabilities in equity that appears on the firms balance sheet? $__
c. what is the balance of current assests on the firm's balance sheet? $__
d. what is the balance of current liablities on the firm's balance sheet? $__
e. what is the amount of accounts payable and accruals on it's balance sheet? (Hint: Consider this as a single line itme on the firm's balance sheet.) $___
f. what is the firm's net working capitial? $___
g. what is the firm's net operating working capital? $____
h. what is the monetary differnce between your answers to part f and g? $___
What does this differnce indicate?
Options (select one): The difference indicates Notes payable balance
The difference indicates Accounts payable balance.
The difference indicates Current liabilities balance.
