In this problem, how do they get answers e, f and g??

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment.

The firm has total assets of $2.5 million and net plant and equipment equals $2 million. It has notes

payable of $150,000, long

-

term debt of

$750,000, and total common equity of $1.5 million. The firm

does have accounts payable and accruals on its balance sheet. The firm only finances with debt and

common equity, so it has no preferred stock on its balance sheet.

3.1

a) T

otal debt?

Total deb

t = $900,000

b) Total Liabilities & Equity?

Total liabilities and Equity = $2,500,000

c) Current Assets

Current assets = $500,000

d) Current Liabilities?

Current liabilities = $250,000

e) Accounts Payable & Accruals?

Accounts payable and accruals = $100,000

f) Net working Capital?

Net working capital = $250,000

g) Net Operating Working Capital

Net operating working capital = $400,000