Question
3. The assets of XYZ Corp. consist entirely of current assets and net plant and equipment. Assume the following figures, and use them to answer
3. The assets of XYZ Corp. consist entirely of current assets and net plant and equipment. Assume the following figures, and use them to answer the questions below: The firm has total assets of $2.5 million and net plant and equipment equals $2 million. It has notes payable $150,000, long-term debt $750,000 and total common equity $1.5 million. It only finances with debt and common equity, so no preferred stock on the balance sheet.
a. What is the amount of total liabilities and equity that appears on the firms balance sheet?
b. What is the balance of current assets on the firms balance sheet?
c. What is the balance of current liabilities on the firms balance sheet?
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