1.What are the company’s total liabilities? 2. What are the company’s total equity?

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
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1.What are the company’s total liabilities?
2. What are the company’s total equity?

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
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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