Solution :
a). Total debt = notes payable + long term debt
= 145,000 + 750,000
= $ 895,000
b). Total liabilities and equity = total assets
= 2,900,000
c). Current assets = total assets - net plant and equipment
= 2,900,000 - 2,600,000
=$ 300,000
d). Total current liabilities = total liabilities and equity - total common equity - long term debt
= 2,900,000 - 1,550,000 - 750,000
= $ 600,000
e). Accounts payable and accruals = total current liabilities - notes payable
= 600,000 - 145,000
= 455,000
f). Net working capital = current asset - current liabilities
= 300,000 - 600,000
= - $300,000
g). Net operating working capital = current assets - accounts payable and accruals
= 300,000 - 455,000
= - $ 155,000
h). The difference between f) and g). represents the balance of notes payable.
