Answer:
Total long-term assets must equal: d $2,771,640
Explanation:
Orem Corporation's Total Debt (liabilities) = current liabilities + long-term liabilities = $116,160 + $474,240 = $590,400
Debt-to-equity ratio = Total Debt/Total Equity
Total Equity = Total Debt/Debt-to-equity ratio = $590,400/0.24 = $2,460,000
Working capital = Current assets - Current abilities
Current assets = Working capital + Current abilities = $162,600 + $116,160 = $278,760
Basing accounting equation:
Total assets = Current assets + Long-term assets = Total liabilities + Total Equity = $590,400 + $2,460,000 = $3,050,400
Long-term assets = Total assets - Current assets = $3,050,400 - $278,760 = $2,771,640
