4 3-1 (in book) Balance Sheet: 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 $2.5 million and net plant and equipment equals $2 million. It has notes payable of $150,000, long-term debt of $750,000, and total common equity of $1.5 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. From the data above, we know the following (fill the yellow highlighted cells in table after you have answered b thru h): Balance Sheet Current assets Net plant and equipment 27 Accounts payable and accruals 2,000,000 Notes Payable Current liabilities 77 150,000 $250,000 750,000 Total Assets Long-term debt Total common equity $2,500,000 Total liabilities and equity 1,500,000
4 3-1 (in book) Balance Sheet: 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 $2.5 million and net plant and equipment equals $2 million. It has notes payable of $150,000, long-term debt of $750,000, and total common equity of $1.5 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. From the data above, we know the following (fill the yellow highlighted cells in table after you have answered b thru h): Balance Sheet Current assets Net plant and equipment 27 Accounts payable and accruals 2,000,000 Notes Payable Current liabilities 77 150,000 $250,000 750,000 Total Assets Long-term debt Total common equity $2,500,000 Total liabilities and equity 1,500,000
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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Transcribed Image Text:4
3-1 (in book)
Balance Sheet: 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 $2.5 million and net plant and
equipment equals $2 million. It has notes payable of $150,000, long-term debt of $750,000, and total
common equity of $1.5 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.
From the data above, we know the following (fill the yellow highlighted cells in table after you have
answered b thru h):
Balance Sheet
Current assets
Net plant and
equipment
27 Accounts payable and
accruals
2,000,000 Notes Payable
Current liabilities
77
150,000
$250,000
750,000
Total Assets
Long-term debt
Total common equity
$2,500,000 Total liabilities and
equity
1,500,000
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