Computing the long-term debt of a company


1) Moonstar, Inc., has completed its fiscal year and reported the given information. Company had present assets of $153,413, net fixed assets of $ 412,331, and other assets of $7,822. Firm also has present liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. How much retained earnings do firm have?

a. $ 405,648
b. $243,648
c. $167,918
d. $573,566

2. Galan Associates prepared its financial statement for 2008 based on information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables of $7,789. The company’s net fixed assets are $42,331, and other assets are $1,822. It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. Compute the long-term debt which the firm have?

a. $54,342
b. $76,342
c. $12,314
d. $18,334

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Accounting Basics: Computing the long-term debt of a company
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