Question

Coffee, Inc., has current assets of $180 million; property, plant, and equipment of $320 million, and other assets totaling $100 million. Current liabilities are $ 150 million and long-term liabilities total $330 million. Read the requirements. (Enter all amounts in millions of dollars.) Requirement 1. Use the data provided to write Coffee's accounting equation. A Requirements 1. Use these data to write Coffee's accounting equation. 2. How much in resources does Coffee have to work with? 3. How much does Coffee owe creditors? 4. How much of the company's assets do the Coffee stockholders actually own? Print Done

Answer 1

Requirement 1:

Assets	=	Liabilities	+	Stockholders' equity
$600,000,000	=	$480,000,000	+	$120,000,000

Explanations:

Assets
Current assets	$180,000,000
Property,plant and equipment	$320,000,000
Other assets	$100,000,000
Total	$600,000,000
Liabilities
Current liabilities	$150,000,000
Long-term liabilities	$330,000,000
Total	$480,000,000
Stockholder's equity
Total assets	$600,000,000
Less: Total liabilities	($480,000,000)
Total Stockholder's equity	$120,000,000

Requirement 2,3&4:

2	Resources	$600,000,000
3	Owe to creditors	$480,000,000
4	Stockholders actually own	$120,000,000