A venture has a $500,000 bank loan outstanding, a long term debt obligation of $900,000, accounts payable of $200,000, and accounts receivable of $350,000 A If the ventures equity value is $2 45 million, what would be the associated enterprise value B Assume the ventures enterprise value has been e...

a Enterprise value 2450000 500000 900000 3850000 b Equi ...

A venture has a $500,000 bank loan outstanding, a long-term debt obligation of $900,000, accounts payable of

Question:

A venture has a $500,000 bank loan outstanding, a long-term debt obligation of $900,000, of $200,000, and of $350,000.
A. If the venture’s equity value is $2.45 million, what would be the associated enterprise value?
B. Assume the venture’s enterprise value has been estimated to be $5.3 million (ignore any information from Part A). What would be the venture’s equity value?
C. Now assume that the venture has surplus cash of $700,000. Show how your answers would change (if at all) for Parts A and B.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...