Chapter 3, Problem 1P

### Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
ISBN: 9781337395250

Chapter
Section

### Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
ISBN: 9781337395250
Textbook Problem

# BALANCE SHEET The assets of Dallas & Associates consist entriely of current assets and net plant and equipment. The firm has total assets of $25 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 $15 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. a. What is the company’s total debt? b. What is the amount of total liabilities and equity that appears on the firm’s balance sheet? c. What is the balance of current assets on the firm’s balance sheet? d. What is the balance of current liabilities on the firm’s balance sheet? e. What is the amount of accounts payable and accruals on its balance sheet? (Him: Consider this as a single line item on the firm’s balance sheet.) f. What is the firm’s net working capital? g. What is the firm’s net operating working capital? h. What is the explanation for the difference in your answers to parts f and g? a. Summary Introduction To compute: The total debt of Company D. Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day. Explanation Given, Long-term debt is$750,000.

Notes payable is $150,000. Formula to compute total debt, Total Debt=Long-term Debt+Notes Payable Substitute$750,000 for long term debt and \$150,000 for notes payable

b.

Summary Introduction

To compute: The amount of total liabilities and equity of Company D.

Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day.

c.

Summary Introduction

To compute: The current assets of Company D.

Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day.

d.

Summary Introduction

To compute: The current liabilities of Company D.

Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day.

e.

Summary Introduction

To compute: The amount of accounts payable and accruals of Company D.

Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day.

f.

Summary Introduction

To compute: The net working capital of Company D.

Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day.

g.

Summary Introduction

To compute: The net operating working capital of Company D.

Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day.

h.

Summary Introduction

To explain: The difference in net working capital and net operating working capital of Company D.

Balance sheet: Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the closure of the accounting period and informs about the company’s financial position on that day.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

#### What is inflation and what causes it?

Brief Principles of Macroeconomics (MindTap Course List)

#### What is inflation and what causes it?

Essentials of Economics (MindTap Course List)

#### FINANCIAL STATEMENTS AND TAXES Part I of this case, presented in Chapter 3, discussed the situation of DLeon In...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

#### What are stock-out costs?

Cornerstones of Cost Management (Cornerstones Series)