Question

Orem Corporation's current liabilities are $119,280, its long-term liabilities are $281,120, and its working capital is...

Orem Corporation's current liabilities are $119,280, its long-term liabilities are $281,120, and its working capital is $167,000. If the corporation's debt-to-equity ratio is 0.14, total long-term assets must equal:

  • A) $2,860,000

  • B) $3,093,400

  • C)$2,974,120

  • D) $2,122,120

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: C)$2,974,120

Explanation

Working capital = Current Assets - Current Liabilities

$167,000 = Current Assets - $119,280

Current Assets =  $167,000 + $119,280

= $286,280

Debt-to-equity ratio = Total Liabilities / Total Equity

0.14 = ($119,280 + $281,120) / Total Equity

0.14 = $400,400 / Total Equity

Total Equity = $400,400 / 0.14

= $2,860,000

Total Equity =  Total Assets - Total Liabilities

$2,860,000 = Total Assets - $400,400

Total Assets = $400,400 + $2,860,000 = $3,260,400

Total long-term assets = Total Assets - Current assets

= $3,260,400 - $286,280

= $$2,974,120

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Orem Corporation's current liabilities are $106,800, its long-term liabilities are $267,200, and its working capital is...
Orem Corporation's current liabilities are $106,800, its long-term liabilities are $267,200, and its working capital is $149,500. If the corporation's debt-to-equity ratio is 0.10, total long-term assets must equal: $2,789,700 $3,964,500 $3,740,000 $3,857,700
Consider this simplified balance sheet for Geomorph Trading: Current assets $ 245 Current liabilities $ 170...
Consider this simplified balance sheet for Geomorph Trading: Current assets $ 245 Current liabilities $ 170 Long-term assets 630 Long-term debt 215 Other liabilities 140 Equity 350 $ 875 $ 875 a. What is the company’s debt-equity ratio? (Round your answer to 2 decimal places.) b. What is the ratio of total long-term debt to total long-term capital? (Round your answer to 2 decimal places.) c. What is its net working capital? d. What is its current ratio? (Round your...
A company has total equity of $2,010, net working capital of $190, long-term debt of $970,...
A company has total equity of $2,010, net working capital of $190, long-term debt of $970, and current liabilities of $2,400. What is the company's net fixed assets? A. $5,380 B. $2,590 C. $3,440 D. $2,790 E. $2,980
Which of the following is correct? A.) Working capital is measured as current liabilities minus current...
Which of the following is correct? A.) Working capital is measured as current liabilities minus current assets. B.) Deferred revenues are considered increases to stockholders' equity. C.) Deferred revenues will eventually become revenue earned. D.) Working capital increases when a company pays the principal on a long-term note.
Current assets = $140,000, net fixed assets = $370,000, long-term debt = $450,000, net working capital...
Current assets = $140,000, net fixed assets = $370,000, long-term debt = $450,000, net working capital = –$45,000. If liquidated, current assets will be sold for $120,000 and net fixed assets will be sold for $400,000. If repaid, both current liabilities and long-term debt will cost their book value. What is the market value of shareholders’ equity? A. Below –$110,000 B. Between –$110,000 and –$90,000 C. Between –$90,000 and –$70,000 D. Between –$70,000 and –$50,000 E. Between –$50,000 and –$30,000...
Sam's Corporation has equity value of $14,480. The long term debt is $9,970. Net working capital...
Sam's Corporation has equity value of $14,480. The long term debt is $9,970. Net working capital other then cash is $3,340. Fixed assets are $12,840. A. How much cash does the company have? If current liabilities are $4,980. B. What is the total current assets?
Which are current liabilities? Current assets? Long-term assets? Long-term liabilities? Equity?
Which are current liabilities? Current assets? Long-term assets? Long-term liabilities? Equity?
5) Accounts payable $499,000 Notes payable $259,000 __________________________ Current liabilities $758,000 ___________________________ ?Long-term debt $1,233,000 Common...
5) Accounts payable $499,000 Notes payable $259,000 __________________________ Current liabilities $758,000 ___________________________ ?Long-term debt $1,233,000 Common equity $5,086,000 _____________________________ Total liabilities and equity $7,077,000 ?(Related to Checkpoint? 4.2) ?(Capital structure? analysis)??The liabilities and? owners' equity for Campbell Industries is found? here:(above chart) a.??What percentage of the? firm's assets does the firm finance using debt? (liabilities)? b. If Campbell were to purchase a new warehouse for $1.3 million and finance it entirely with? long-term debt, what would be the? firm's new...
A firm had current assets of $50,000, net fixed assets of $250,000, current liabilities of $...
A firm had current assets of $50,000, net fixed assets of $250,000, current liabilities of $ 30,000, and long-term debt of $100,000 What is the firm’s stockholder equity? What is the net working capital? If its current liabilities consist of $20,000 in accounts payable and $10,000 in short-term debt (notes payable), what is the firm’s net working capital? Your submission must include and indicate clearly which EQUATIONS from the textbook that you have used, and must show steps in details...
The Lonesome Duck has net working capital of $620. Long-term debt is $4,320, total assets are...
The Lonesome Duck has net working capital of $620. Long-term debt is $4,320, total assets are $8,190, and fixed assets are $4,710. What is the amount of the total liabilities? A. $4,920 B. $8,050 C. $6,890 D. $7,180 E. $2,860
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT