The arsets of Dalfas B. Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of s3 milion and 7 plant and equipment equals $2.5 million. It has notes payable of $155,000, long-term debt of $756,000, and total cormmon equity of $1.5 malion. The firm does have account payable and accruals on its balance sheet. The firm only firances with debt and common equity, so it has no preferred stock on its balanice sheet. Wrte out your answers completely. For example, 25 million should be entered as 25,000,000. Negative values, if any, should be indicated by a minus sign. found your answer the nearest dollar, if necessary. a. What is the company's total debe? b. What is the amount of total labilites and equity that appears on the firm's balance sheet? 5 c. What is the bolance of current astets on the firm's balance sheet? d. What is the balsnce of current liabitves on the firm's balance sheet? 1+ e. What is the amount of accounts payable and acoruals on its balance sheet? (hintt Consitfer this as a single line iteat on the firm's balance sheec) 1. What is the firm's net working capital? If your antwec is zero, enter "o*. 9. What is the firm'i net opersting monking captar? h. What is the monetary difference between your answers to part f and 9 ? 5 What does this difference indicate? The balance sheet is a "snapshot" of a firm's position at a specific point in time. Figure 3.1 shows the layout of a typical balance sheet. The left side of the statement shows the assets that the company owns, and the right side shows the firm's liabilities and stockholders' equity, which are claims against the firm's assets. As Figure 3.I shows, assets are divided into two major categories: current assets and fixed, or long-term, assets. Current assets consist of assets that should be converted to cash within one year, and they include cash and cash equivalents, accounts receivable, and inventory. Long-term assets are assets expected to be used for more than one year, they include plant and equipment in addition to intellectual property such as patents and copyrights. Plant and equipment is generally reported net of accumulated depreciation. Allied's long-term assets consist entirely of net plant and equipment, and we often refer to them as "net fixed assets." The claims against assets are of two basic typesliabilities (or money the company owes to others) and stockholders' equity. Current liabilities consist of claims that must be paid off within one year, including accounts payable, accruals (total of accrued wages and accrued taxes), and notes payable to banks and other short-term lenders that are due within one year. Long-term debt includes bonds that mature in more than a year. Stockholders' equity can be thought of in two ways. First, it is the amount that stockholders paid to the company when they bought shares the company sold to raise capital, in addition to all of the earnings the company has retained over the years: Stockholders'equity = Paid-in capital The retained earnings are not just the earnings retained in the latest year - they are the cumulative total of all of the earnings the company has earned and retained during its life. Stnckhnldere' omitu man alen he thincht of ace