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lord [1]
3 years ago
14

The assets of a company total $738,000; the liabilities, $219,000. what are the net assets?

Business
1 answer:
ziro4ka [17]3 years ago
4 0
739,000 - 219,000 = 520,000

The net assets are assets minus liabilities, so it is $520,000 in this case.
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3 years ago
Read 2 more answers
Pro forma balance sheet Peabody & Peabody has 2019 sales of $10 million. It wishes to analyze expected performance and finan
zysi [14]

Answer:

Peabody & Peabody

a. Peabody & Peabody

Pro Forma Balance Sheet

December 31, 2021 ($000)

Cash                             480

Marketable securities 200

Accounts receivable 1,440

Inventories                2,160

Total current assets 4,280

Net fixed assets       4,820

Total assets              9,100

Liabilities and Stockholders equity:

Accounts payable          1,680

Accruals                           500

Other current liabilities     80

Total current liabilities 2,260

Long-term debt           2,000

Total liabilities             4,260

Common equity         3,900            

Total liabilities and stockholders’ equity $8,160

Required Finance         940

b. From the statement prepared in part a, it is clear that Peabody & Peabody requires new financing of $940,000 for 2020 to meet the projected assets base.

Explanation:

a) Data and Calculations:

2019 Sales = $10 million

Pro Forma Balance Sheet

December 31, 2017 ($000)

Assets:

Cash                             400

Marketable securities 200

Accounts receivable 1,200

Inventories                1,800

Total current assets 3,600

Net fixed assets       4,000

Total assets              7,600

Liabilities and Stockholders equity:

Accounts payable          1,400

Accruals                           400

Other current liabilities     80

Total current liabilities  1,880

Long-term debt           2,000

Total liabilities              3,880

Common equity           3,720

Total liabilities and stockholders’ equity $7,600

Purpose: To analyze expected performance and financing needs for 2021.

1. Percent of Sales ($12 million)

Accounts receivable, 12%  $1,440

Inventory, 18%                    $2,160

Accounts payable, 14%      $1,680

Net profit margin, 3%          $360

2. Market securities            $200

3. Cash balance (desired minimum) $480

4. Net fixed assets           4,000

New equipment in 2020    650

Depreciation, 2020           (290)

New equipment in 2021    850

Depreciation, 2021            (390)

Net fixed assets            $4,820

5. Accruals                       $500

8. Dividend payout = 50% of $360 = $180

Retained Earnings (current) = $180

Common Equity:

2019    3,720

Income   180 (Retained Earnings)

2020  3,900

5 0
3 years ago
question content area for the year ended december 31, orion, inc. mistakenly omitted adjusting entries for $1,500 of supplies th
Oduvanchick [21]

Errors will have a $2,300 overstatement of net income on revenues, costs, and net income.

The amount earned by an individual or business after costs, allowances, and taxes is referred to as net income. Net income in the company is the amount that remains after all costs, such as salaries and wages, the cost of goods or raw materials, and taxes, have been paid.

Net income = Total revenue - total expenses

where,

Total revenue = Unearned revenue = $4,200

Total Expense = Supplies expense + insurance expense = $1,500 + $5,000 = $6,500

Net Income = Total revenue - Total Expenses = $4,200 - $6,500

Net Income = -$2,300

Therefore, there's an overstatement of $2300 in Net Income.

To know more about Net Income, refer to this link:

brainly.com/question/6391667

#SPJ9

6 0
1 year ago
A gardener has three herb beds she wishes to plant in a design that consists of three equilateral triangles laid out in such a w
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The design is shown in the attached picture. An equilateral triangle has sides that have equal measurements. On the other hand, a vertex is the terminal point of at least two line segments. Therefore, when you join three equilateral triangles sharing a common vertex, that simply means that they have a common point.

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3 years ago
Breonna Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, con
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Answer:

$35,000

Explanation:

Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).

Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000

7 0
3 years ago
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