Long description
The balance sheet reads, Current assets: $ 1,150,000
Net fixed assets: 3,450,000
Total assets: $ 4,600,000
Liabilities and owners’ equity:
Accounts payable: $ 1,150,000
Accrued expenses: 575,000
Notes payable: 500,000
Total current liabilities: $ 2,225,000
Long-term debt: 1,000,000
Total liabilities: $ 3,225,000
Common stock (par): $ 100,000
Paid-in capital: 200,000
Retained earnings: 987,500
Total common equity: $ 1,287,500
Projected sources of financing: $4,512,500
Discretionary financing needs: $87,500
Total financing needs equals Total assets: $ 4,600,000.
The text, “Projected sources of financing is the sum of total liabilities ($3.225 million) and total common equity ($1.2875 million), which equals $4.5125 million. Note that total common ...
Get Financial Management: Principles and Applications, 13/e now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
