Page 171 - CalcBus_Flipbook

CH 20] Calculating Business 20-27

Homework #20-1
Name: ________________

Refer to pages 20-2 to 20-7

1. Westphalia Trucking, Inc. has total current liabilities of $280,000, total Fixed Liabilities of
$910,000, total fixed assets of $669,000, and current assets of $490,000. Find the
company's working capital.

Working Capital_________________________

2. Desert News Distributor has Total Current Assets of $494,000, Total Fixed assets of
$709,800, Total Long-Term Liabilities (Notes Payable & Mortgages) of $702,780, and
Current Liabilities of $210,600. How much is Desert News’ working capital. 20

Working Capital_________________________

3. Ike Clanton’s Tucson Cattle Trading Company has Total Current Assets of $675,000,
Total Fixed assets of $71,327,000, Total Long-Term Liabilities (Notes Payable &
Mortgages) of $650,000, and Current Liabilities of $290,000. How much is Ike Clanton’s
working capital.

Working Capital_________________________

4. The balance sheet of the Starke and William Company shows the following:
Accounts payable $ 28,750
Notes payable 20,000
Mortgage payable 181,250
Christina Starke, net worth 95,625
Roger Williams, net worth 140,625

Determine (a) the creditors' equity and (b) the owners' equity in this firm.

(a) Creditor Equity_________________________

(b) Owner Equity_________________________

5. The balance sheet of Overland Productions 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 20-2: How much are the firm's (a) total assets and (b) Long-term Liabilities.

(a) Total Assets_________________________

(b) Long-Term Liabilities_________________________