Imagine a balance sheet: Current assets = $105, current liabilities $100, fixed assets = the owner's equity = $135. What is the value of long term debt if it is the only other item on the $340 %3D balance sheet? O $210 O $235
Imagine a balance sheet: Current assets = $105, current liabilities $100, fixed assets = the owner's equity = $135. What is the value of long term debt if it is the only other item on the $340 %3D balance sheet? O $210 O $235
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
Related questions
Question

Transcribed Image Text:Imagine a balance sheet: Current assets = $105, current liabilities = $100, fixed assets = $340, and
%3D
the owner's equity = $135. What is the value of long term debt if it is the only other item on the
%3D
balance sheet?
O $210
O $235
O $445
O $105
O $205
Expert Solution
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Step 1
Given information
Asset side total =fixed asset+ current assets
105+345
=445
Liability side total=owner equity+current liability +long term debt
445= 135+100+long term debt
Long term debt=445-235
=210
Step by step
Solved in 2 steps
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