Question

2. a Use the attached balance sheet to answer the following questions What is the largest source of long-term cash being used by the company? How will this source probably affect the company's use of cash on an ongoing basis? (4 points) b. What is the company's largest investment in short-term assets? Describe these types of assets. (4 points) For common stockholders, what is their amount of investment in the company? Why? (4 points) d. How much has the company invested in long term assets? Why are these assets important for the company's success? (4 points) C

Answer 1

Answer :- P. No. 1 D The largest Source of long term Cash for the Company is through Stockholder's equity which is $ 80,552 for Dogo and $ 78,590 for 2019. long term Cash is usually used by the Companies to buy long term assets. In this case the Company Can use this long term Cash from Shareholders to buy property, pland & equipment and other long term assets. long term Sources should never be utilized on short term operating expenditure like salary payment, rent payment, payment of telephone charge of Stationery bill etc. The Company's largest investment in short term asset is in short term investment which is $ 199951 in 2030 and $ 199,463 in 2019. Short term assets are basically astets which generale cash flow

P. 2 for the firm within a Span of one year. for example debtors that has to be realized within an year. Inventories are also realizable within an year. These assets help to fund Current liabilities of the form. 3) for Common shareholders, the investment Consists of the money put in shares of the from plus the retained earnings of the firm. These two elements Comprise the shareholders funds. As retained earnings are assumed to be generated through the funds invested by shareholders, so it is considered as a part part of Shareholders funds. ex) Company has invested $ 119, 396 ($441514 $ 8,753 + $ 9965+ $ 43,351 + $ 4038 + $13,138 in the year 2020 and $ 111,004 ($ 36,477 + $7379 +40649 + $ 42,026 + $7750 + $14,723

P.3 in 2019 in long term assets. The long term assets are important to Company's Sucess as it assists the firm to generate revenue for the future. These assets help the firm to operate Smoothly and efficiently to earn Cash flows for the firm and grow. please give me thems up.