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Assign 2 Module 5

This document provides a statement of financial position and calculations for various line items. It calculates: 1) Total liabilities and equity as $2,500,000 based on total assets of $2,500,000 and common equity of $1,500,000. 2) Current assets as $500,000 by subtracting net plant and equipment of $2,000,000 from total assets. 3) Current liabilities as $250,000 by subtracting long-term debt of $1,500,000 from total liabilities.

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finn mertens
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61 views

Assign 2 Module 5

This document provides a statement of financial position and calculations for various line items. It calculates: 1) Total liabilities and equity as $2,500,000 based on total assets of $2,500,000 and common equity of $1,500,000. 2) Current assets as $500,000 by subtracting net plant and equipment of $2,000,000 from total assets. 3) Current liabilities as $250,000 by subtracting long-term debt of $1,500,000 from total liabilities.

Uploaded by

finn mertens
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problem 1(Statement of Financial Position)

Required:

a. Total Liabilities & Equity

Total Assets = Total Liabilities + Common Equity

Total Liabilities & Equity


2,500,000
1,000,000
1,500,000
P2,500,000

b. Balance of Current assets

Current Assets = Total Assets - Net plant & equipment

Total Liabilities & Equity


2,500,000
-2,000,000
500,000

c. Balance of Current Liabilities

Current Liabilities = Total Liabilities - Long-Term Debt

Current Libilities
2,500,000
-1,500,000
-750,000
250,000

d. Amounts of accounts payable and accruals

Current Liabilities [-Notes Payable] = Accounts Payable + Accruals + Notes Payable [-Notes Payable]

Accounts Payable &


Accrual
2,500,000
-1,50,000
-750,000
-1,500,000
100,000

e. Net Working Capital

Net Working Capital = current assets - current liabilities

Net Working Capital


500,000
-250,000
250,000

f. Net operating working capital

Net operating working capital = net working capital + interest bearing current liabilities

Net Working Capital


250,000
150,000
P400,000

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