Reference no: EM131835810

How do work this reading problem into a math problem. The assets of Dallas & Associates 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 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.

3.1

a) Total debt?

Total debt = $900,000

b) Total Liabilities & Equity?

Total liabilities and Equity = $2,500,000

c) Current Assets

Current assets = $500,000

d) Current Liabilities?

Current liabilities = $250,000

e) Accounts Payable & Accruals?

Accounts payable and accruals = $100,000

f) Net working Capital?

Net working capital = $250,000

g) Net Operating Working Capital

Net operating working capital = $400,000

h) The difference between f) and g) is equal to the notes payable balance