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Total assets

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The Tom Smith Corporation has the following items: cash, $5,000; machinery, $50,000; building, $150,000; note payable bank, $10,000; savings, $10,000; long-term debt, $50,000; accounts payable, $30,000; taxes payable, $5,000; accounts receivable, $30,000; inventory, $10,000; depreciation building, $35,000; depreciation machinery, $25,000; and land, $50,000. Total assets for this corporation are:

A. $55,000.
B. $95,000.
C. $155,000.
D. $190,000.
E. $245,000.

Which of the following is not an example of economic capital?

A. a bond issued by IBM.
B. a delivery truck used by Federal Express.
C. a desk in a classroom.
D. an electric plant used by your local utility to generate electricity.
E. all of the above are examples of economic capital.

Liquidity ratios can be obtained from information on the balance sheet, while activity ratios require information obtained from the:

A. balance sheet only.
B. income statement and balance sheet.
C. income statement only.
D. income statement, balance sheet, and statement of cash flows.
E. none of the above.

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Solution Preview

The Tom Smith Corporation has the following items: cash, $5,000; machinery, $50,000; building, $150,000; note payable bank, $10,000; savings, $10,000; long-term debt, $50,000; accounts payable, $30,000; taxes payable, $5,000; accounts receivable, ...

Solution Summary

Response helps in computation of total assets

$2.19