Question

PRINTER VERSION BACK NEXT Questions Paul White, the CFO of Crane 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 $313,000, retained earnings of $512,159, inventory of $212,300, goodwill and other assets equal to 578,656, niet plant and equipment of $713,500, 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 Crane Automotive have? Long-term debt $ Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Computation of Long-Term Debt Balance: Crane Automotive Inc. Balance Sheet (Partial) At the end of 20xx Assets Amount ($) Liabilities cash 23,015.00 Accounts Payable Inventory 2,12,300.00 Shot term notes payable Accounts Receivables 1,41,258.00 Total Current Liabilities others Current Assets 11,223.00 Total Current Assets 3,87,796.00 Long Term Debt Shareholder's Equity: goodwill and other 78,656.00 Common Stock Plant and Equipment 7,13,500.00 Retained earnings Total 11,79,952.00 Total Amount ($) 1,63,257.00 21,115.00 1,84,372.00 ? 3,13,000.00 5,12,159.00 11,79,952.00 Therefore, Long-Term debt = Total Assets - Current liabilities - Shareholder Equity = $1,179,952.00 - $184,372.00 - $313,000.00 - $512,159.00 = $170,421.00