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Analyze the financial position of DEF Logistics, a transportation company, based on the provided financial...

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Accounting

Analyze the financial position of DEF Logistics, a transportation company, based on the provided financial data for the fiscal year ending December 31, 2023, to determine whether the company is likely to continue as a going concern.

Financial Data:

  • Total assets: $70,000,000
  • Total liabilities: $45,000,000
  • Total equity: $25,000,000
  • Net income for the year: $3,800,000
  • Cash and cash equivalents: $12,000,000
  • Accounts receivable: $15,000,000
  • Inventory: $0
  • Property, plant, and equipment: $40,000,000
  • Long-term debt: $35,000,000
  • Accounts payable: $20,000,000
  • Accrued expenses: $5,000,000
  • Revenue for the year: $100,000,000
  • Cost of goods sold: $0
  • Operating expenses: $55,000,000
Income tax expense: $6,200,000

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