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Homework answers / question archive / Coffee Shop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million

Coffee Shop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million

Accounting

Coffee Shop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million. Current liabilities are $170 million and long-term liabilities total $300 million.

Requirements:

1. Use these data to write CoffeeShop Doughnuts' accounting equation.

2. How much in resources does CoffeeShop have to work with?

3. How much does CoffeeShop owe creditors?

4. How much of the company's assets do the CoffeeShop stockholders actually own?

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Basic Accounting equation is as follows:

Assets = Liabilities + Equity

1. Accounting equation to write CoffeeShop Doughnuts' is as follows:

$280M + $430M + $170M = $170M + $300 + $410

/

$880M = $470M + $410

2. Resources that CoffeeShop have are the total assets summarized as follows:

Current Assets $280 M
Property Plant and Equipment 430 M
Other Assets 170 M
Total Assets $880 M

3. CoffeeShop owe to creditors are the total liabilities summarized as follows:

Current liabilities $170 M
Long-term liabilities 300 M
Total Liabilities $470 M

4. Company's assets that the CoffeeShop stockholders actually own is the Net Assets or equity as follows:

 

Total Assets $880 M
Less: Total Liabilities 470 M
Equity $410 M

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