Financial Management: Principles and Applications, 13/e

Long description

The diagram shows relationship between variables such as total assets, total liabilities, net working capital as follows:

• Total assets equals total liabilities plus stockholders' equity

• Total assets equals long-term (fixed) assets plus current assets

• Total liabilities and equity equals current liabilities plus long-term liabilities plus stockholders' equity

• Net working capital equals current assets minus current liabilities

The current assets shown are as follows:

• Cash

• Accounts receivable

• Inventory

• Other current assets

The Long-term (fixed) assets shown are as follows:

• Net plant and equipment

• Other long-term assets

The current liabilities shown are as follows:

• Accounts payable

• Short-term debt (notes payable)

• Other current liabilities ...