Answer:
See below
Explanation:
a. Accounts receivables
= Sales / Receivables turnover
= $3,549,000 / 7x
= $507,000
b. Marketable securities
= Current assets - (Cash + Accounts receivable + Inventory)
Where;
Current asset = Current ratio × Current liabilities
Current asset = 2.95 × $788,000
Current asset = $2,348,240
Hence,
Marketable securities
= $2,348,240 - ($179,000 + $507,000 + $911,000)
= $2,348,240 - $1,597,000
= $751,240
c. Fixed assets
Total assets = Current assets + Fixed assets
$2,535,000 = $2,348,240 + Fixed assets
Fixed assets = $2,535,000 - $2,348,240
Fixed assets = $186,760
d. Long term debt
= Total debt - Current liabilities
Where,
Total debt = Debt to assets × Total assets
= 40% × ($3,549,000 / 1.40)
= 40% × $2,535,000
= $1,014,000
Hence,
Long term debt
= $1,014,000 - $788,000
= $226,000
