Tim Dye, the CFO of Blackwell Automotive, Inc., is putting together this year\'s
ID: 2682184 • Letter: T
Question
Tim Dye, the CFO of Blackwell 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 $231,645, retained earnings of $512,159, inventory of $207,798, goodwill and other assets equal to $78,656, net plant and equipment of $680,348, 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 Blackwell Automotive have?
Explanation / Answer
Total asset = $23,015 + $207,798+ $78,656+ $680,348 +$141,258 + $11,223 = 1142298 Total equity = $231,645 +$512,159 = 743804 Total long term debt = 1142298 - 743804 - $21,115 - $163,257 = $214,122