Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
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1.What are the company’s total liabilities?
2. What are the company’s total equity?

Transcribed Image Text:Use the following information to answer the questions. A company reports the
following on its balance sheet:
Cash: $10,000
Accounts receivable: $20,000
Inventory: $14,000
Prepaid expenses: $3,000
Property, plant, and equipment: $35,000
Accumulated depreciation: $2,000
Accounts payable: $5,000
Accrued expenses: $6,000
Short-term notes: $7,000
Long-term notes: $10,000
Capital stock: $40,000
Retained earnings: $12,000
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