The assets of the Dallas Corporation consist entirely of current assets and net plant and equipment. The firm has total assets of $2.5 million and net plant and equipment equals $2 million. It has notes payable $150,000, long-term debt $750,000 and total common equity $1.5 million. It only finances with debt and common equity, so no preferred stock on the balance sheet. What is the amount of total liabilities and equity that appears on the firm’s balance sheet? What is the balance of current assets on the firm’s balance sheet? What is the balance of current liabilities on the firm’s balance sheet?

The assets of the Dallas Corporation consist entirely of current assets and net plant and equipment. The firm has total assets of $2.5 million and net plant and equipment equals $2 million. It has notes payable $150,000, long-term debt $750,000 and total common equity $1.5 million. It only finances with debt and common equity, so no preferred stock on the balance sheet. What is the amount of total liabilities and equity that appears on the firm’s balance sheet? What is the balance of current assets on the firm’s balance sheet? What is the balance of current liabilities on the firm’s balance sheet?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 20P

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