Question

A company has $1,329 in inventory, $4,764 in net fixed assets, $622 in accounts receivable, $270 in cash, $570 in accounts payable, and $5,359 in equity. What is the company's long-term debt?

Answer 1

Answer:

The company's long-term debt is $1,056.

Explanation:

Total assets

= inventory + net fixed assets + accounts receivable + cash

= $1,329 + $4,764 + $622 + $270

= $6985

Long term Debt = Total Assets - Equity - A/c Payable

                           = $6985 - $5,359 - $570

                           = $1,056

Therefore, The company's long-term debt is $1,056.