Question

A company has $1,287 in inventory, $4,710 in net fixed assets, $586 in accounts receivable, $246...

A company has $1,287 in inventory, $4,710 in net fixed assets, $586 in accounts receivable, $246 in cash, $522 in accounts payable, and $5,305 in equity. What is the company's long-term debt?

a. $1,002

b. $1,524

c. $1,181

d. $1,039

e. $1,460

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Answer #1

Company's total Assets = Inventory + Net fixed assets + Accounts receivable + Cash

Company's total Assets = $1,287 + $4,710 + $586 + $246 = $6,829

Company's Long term debt = Company's total assets - Equity - Accounts payable

Company's Long term debt = $6,829 - $5,305 - $522

Company's Long term debt = $1,002

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