Question

Charles Wilson, the CFO of Sunland Automotive, Inc., is putting together this year's financial statements. He has gathered the following balance sheet information: The firm had a cash balance of $23,015, accounts payable of $163,257, common stock of $312,100, retained earnings of $512,159, inventory of $212,100, goodwill and other assets equal to $78,656, net plant and equipment of $710,100, and short-term notes payable of $21,115. It also had accounts receivable of $141,258 and other current assets of $11,223. How much long-term debt does Sunland Automotive have

Answer 1

Answer:

long temr liabilities $167,721‬

Explanation:

We solve using the accounting equation:

Assets = Liabilities + Equity

Assets:

cash balance of $23,015,

inventory of $212,100,

accounts receivable of $141,258

and other current assets of $11,223

net plant and equipment of $710,100,

goodwill and other assets equal to $78,656

Total: 1.176.352‬

Equity

common stock of $312,100,

retained earnings of $512,159

Total 824.259‬

We now replace and solve for Liaibilities

Assets = Liabilities + Equity

1,176,352 = Liabilities + 825,259

Liaiblities = 352,093‬

Where:

accounts payable of                     $163,257

and short-term notes payable of $     21,115

Total short term:                            $ 184,372‬

long term + short term = total liabilities

long term + 184,372 = 352,093

352,093 - 184,372 = 167,721‬

Answer 2

Answer:

The long term debt is $167,721

Explanation:

Workings are attached.

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