Question

Kevin Hall, the CFO of Wildhorse 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 $312,300, retained earnings of $512,159, inventory of $211,200, goodwill and other assets equal to $78,656, net plant and equipment of $714,800, 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 Wildhorse Automotive have?

Long-Term Debt: ___________?

Answer 1

long term debt:

working:

liabilities	amount	assets	amount
common stock	312,300	cash	23,015
retained earnings	512,159	inventory	211,200
accounts payable	163,257	goodwill and other assets	78,656
short term notes payable	21,115	net plant and equipment	714,800
long term debt (balancing figure)	171,321	accounts receivable	141,258
		current assets	11,223
	1,180,152		1,180,152

value of long term debt = total asset - rest of liabilities

=>1,180,152 - 312,300-512,159 - 163,257-21,115

=>171,321.