Answer:
Blossom Automotive have long-term debt of <u>$174,321</u>.
Explanation:
This can be estimated using the following accounting equation:
Total Assets = Shareholders' equity + Total liabilities ............... (1)
Where;
Total Assets = cash balance + inventory + goodwill and other assets + net plant and equipment + accounts receivable + other current assets = $23,015 + $214,500 + $78,656 + $714,100 + $141,258 + $11,223 = $1,182,752
Shareholders' equity = common stock + retained earnings = $311,900 + $512,159 = $824,059
Short-term liabilities = accounts payable + short-term notes payable = $163,257 + $21,115 = $184,372
Total liabilities = Short-term liabilities + long-term debt = $184,372 + long-term debt
Substituting the relevant values into equation (1) and solve for long-term debt, we have:
$1,182,752 = $824,059 + $184,372 + long-term debt
long-term debt = $1,182,752 - $824,059 - $184,372
long-term debt = $174,321
Therefore, Blossom Automotive have long-term debt of <u>$174,321</u>.
