E1-21A. (Learning Objectives 3, 4: Apply the accounting equation; evaluate businessoperations) Willow, Inc., has current assets of $220 million; property, plant, and equipmentof $320 million; and other assets totaling $130 million. Current liabilities are $160 million andlong-term liabilities total $380 million.Requirements1. Use these data to write Willow’s accounting equation.2. How much in resources does Willow have to work with?3. How much does Willow owe creditors?4. How much of the company’s assets do the Willow stockholders actually own?
E1-21A. (Learning Objectives 3, 4: Apply the accounting equation; evaluate businessoperations) Willow, Inc., has current assets of $220 million; property, plant, and equipmentof $320 million; and other assets totaling $130 million. Current liabilities are $160 million andlong-term liabilities total $380 million.Requirements1. Use these data to write Willow’s accounting equation.2. How much in resources does Willow have to work with?3. How much does Willow owe creditors?4. How much of the company’s assets do the Willow stockholders actually own?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E1-21A. (Learning Objectives 3, 4: Apply the
operations) Willow, Inc., has current assets of $220 million; property, plant, and equipment
of $320 million; and other assets totaling $130 million. Current liabilities are $160 million and
long-term liabilities total $380 million.
Requirements
1. Use these data to write Willow’s accounting equation.
2. How much in resources does Willow have to work with?
3. How much does Willow owe creditors?
4. How much of the company’s assets do the Willow stockholders actually own?
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