Page 204 - Calculating Agriculture Cover 20191124 STUDENT - A
P. 204
21-20 Profitability & Performance Measures CH 21]
5. The balance sheet of Overland Processors shows the following:
Machinery $337,500
Equipment 99,085
Buildings and land 589,000
Accounts payable 51,110
Notes payable 94,620
Mortgage payable 339,150
Refer to page 21-3: How much are the firm's (a) total assets and (b) Long-term
Liabilities.
Solution algorithm:
Total Assets
Machinery $337,500 Note: Accounts Payable are short-
Equipment 99,085 term liabilities. Notes Payable and
Buildings and land 589,000 Mortgages are long-term liabilities
(a) Total Assets 1,025,585 lasting 18 months or greater.
Long-Term Liabilities Refer to page 21-3.
Notes payable 94,620
Mortgage payable 339,150
(b) Long-Term Liabilities 433,770
6. The balance sheet of Hallie Anne’s shows the following:
Machinery $300,000
Equipment 88,655
Buildings and land 651,000
Accounts payable 41,964
Notes payable 111,552
Mortgage payable 342,720
Refer to page 21-3: Determine firm's (a) total assets and (b) Long-term Liabilities.
Solution algorithm:
Total Assets
Machinery $300,000 Note: Accounts Payable are short-
Equipment 88,655 term liabilities. Notes Payable and
Buildings and land 651,000 Mortgages are long-term liabilities
(a) Total Assets 1,039,655 lasting 18 months or greater.
Long-Term Liabilities Refer to page 21-3.
Notes payable 111,552
Mortgage payable 342,720
(b) Long-Term Liabilities 454,272
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