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Author Question: Use the table for the question(s) below.Balance SheetAssetsLiabilitiesCurrent AssetsCurrent ... (Read 56 times)

bio_gurl

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Use the table for the question(s) below.

Balance Sheet
AssetsLiabilities
Current AssetsCurrent Liabilities
Cash 50 Accounts payable 42
Accounts receivable22 Notes payable/short-term debt 7
Inventories 17
Total current assets 89Total current liabilities 49
Long-Term Assets Long-Term Liabilities
Net property, plant,
and equipment121Long-term debt 128
Total long-term assets 121 Total long-term liabilities 128
Total Liabilities 177
Stockholders' Equity 33
Total Assets 210Total Liabilities and210
Stockholders' Equity


The above diagram shows a balance sheet 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?
◦ Long-Term Liabilities would fall to $172 million, and Total Liabilities and Stockholders' Equity would be adjusted accordingly.
◦ Long-Term Liabilities would rise to $182 million, and Total Liabilities and Stockholders' Equity would be adjusted accordingly.
◦ Net property, plant, and equipment would fall to $116 million, and Total Assets and Stockholders' Equity would be adjusted accordingly.
◦ Net property, plant, and equipment would rise to $126 million, and Total Assets and Stockholders' Equity would be adjusted accordingly.


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Marked as best answer by bio_gurl on Jul 9, 2019

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bio_gurl

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Reply 2 on: Jul 9, 2019
Thanks for the timely response, appreciate it


ebonylittles

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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