Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 (40 points) You are given the following financial information on the Balance Sheet of ACF Inc., as of Dec 31, 2019. Assuming all

image text in transcribed

Question 1 (40 points) You are given the following financial information on the Balance Sheet of ACF Inc., as of Dec 31, 2019. Assuming all the entries included in the ACF Inc.'s Balance Sheet are shown below. However, part of the report is destroyed, so the information in the row that shows Long-term Debt" is no longer visible: Accounts payable $170,000 Accounts receivable = $95,000 Cash = $320,000 Inventory = $820,000 Short-term Debt = $120,000 Net PP&E = $6,760,000 Total Stockholders' Equity = $4,775,000 Long-term Debt = ? Also, the firm's 2019 sales were $5 million, and its net income was $820,000, of which it paid out 40% in dividends. ACF Inc. had no stock sales or repurchases during 2019. (a) (10 points) Calculate the firm's net working capital on Dec. 31, 2019. (b) (10 points) Find the book value of the firm's debt-equity ratio. (c) (10 points) Determine ACF Inc.'s book value of equity for the fiscal year ended Dec 31, 2018 (d) (10 points) Given that ACF Inc.'s total debt for the fiscal year ended Dec 31, 2018 was $2,000,000. Calculate the Cash from Financing Activities on 2019 Statement of Cash Flows

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton

6th Edition

1618533592, 9781618533593

More Books

Students also viewed these Accounting questions

Question

Describe five career management practices

Answered: 1 week ago