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The accompanying table shows a statement of financial position for a certain company. All quantities shown are in millions of dollars. How would the balance
The accompanying table shows a statement of financial position for a certain company. All quantities shown are in millions of dollars. How would the balance sheet change if the company's long-term assets were judged to depreciate at an extra $5 million per year? Statement of Financial Position Assets Current Assets Cash Accounts receivable Inventories Total current assets Long-Term Assets Net property, plant, and equipment Total long-term assets Total Assets 210 Liabilities Current Liabilities Accounts payable Notes payable/short-term debt Total current liabilities Long-Term Liabilities Long-term debt Total long-term liabilities Total liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity 8 121 42 7 49 2122232 128 128 177 33 210 A. Long-Term Liabilities would fall to $172 million, and Total Liabilities and Stockholders' Equity would be adjusted accordingly. B. Net property, plant, and equipment would be unchanged, and Total Assets and Stockholders' Equity would also remain the same. C. Long-Term Liabilities would rise to $182 million, and Total Liabilities and Stockholders' Equity would would be adjusted accordingly. OD. Net property, plant, and equipment would fall to $116 million, and Total Assets and Stockholders' Equity would be adjusted accordingly. E. Net property, plant, and equipment would rise to $126 million, and Total Assets and Stockholders' Equity would be adjusted accordingly
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