Assume that the balances of assets, accounts payable, and accrued expenses payable were the same as shown below. However, the balance of accumulated depreciation was $400,000. In this scenario, would Company X have had to raise more capital?
|
Assets |
Liabilities & Owners’ Equity |
||
|
Cash |
$700,000 |
Accounts Payable |
$350,000 |
|
Accounts Receivable |
$500,000 |
Accrued Expenses Payable |
$165,000 |
|
Inventory |
$780,000 |
||
|
Prepaid Expenses |
$110,000 |
||
|
Total Current Assets |
$2,090,000 |
||
|
Property, Plant, & Equipment |
$2,450,000 |
||
|
Accumulated Depreciation |
($685,000) |
||
|
Cost Less Depreciation |
$1,765,000 |
||
|
Total Assets |
$3,855,000 |
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