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The Zumwalt Corporation has $1,200,000 in total assets in 2019. Claims are as follows: Accruals $100,000 Accounts Payable 50,000 Notes Payable 150,000 Long-term Debt 250,000

The Zumwalt Corporation has $1,200,000 in total assets in 2019. Claims are as follows:

Accruals $100,000

Accounts Payable 50,000

Notes Payable 150,000

Long-term Debt 250,000

Preferred Stock 50,000

Common Stock 50,000

Capital in Excess of Par 150,000

Retained Earnings 400,000

Total Claims $1,200,000

Assuming that Zumwalt does not consider Notes Payable to be part of its capital structure, what proportionate allocations does the firm give each component of capital?

Total Capital = _________________ [Hint: Current Liabilities are NOT part of Capital.]

Percentage of Capital derived from Long-Term Debt = ___________________

Percentage of Capital derived from Preferred Stock = ____________________

Percentage of Capital derived from Common Stock = ____________________

NOTE: You should assume that the Notes Payable are short term liabilities.

When determining Capital amounts, Retained Earnings and Capital in excess of Par should be included with Common Stock equity.

Be sure to include all relevant amounts in the denominator to arrive at the correct value for Total Capital

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