Instead of the amounts shown below, suppose that the cost of Company X’s fixed assets was $3,850,000 and that accumulated depreciation was $958,000. Determine the amount of capital the business would have had to raise in this scenario.
|
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 |
||