Assume that the balances of assets, accounts payable, and accrued expenses payable were the same as shown below. However, the balance of accumulated depreciation was $400,000. In this scenario, would Company X have had to raise more capital?
|
Assets
|
Liabilities & Owners' Equity
|
|
Cash
|
$700,000
|
Accounts Payable
|
$350,000
|
|
Accounts Receivable
|
$500,000
|
Accrued Expenses Payable
|
$165,000
|
|
Inventory
|
$780,000
|
|
|
|
Prepaid Expenses
|
$110,000
|
|
|
|
Total Current Assets
|
$2,090,000
|
|
|
|
Property, Plant, & Equipment
|
$2,450,000
|
|
|
|
Accumulated Depreciation
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($685,000)
|
|
|
|
Cost Less Depreciation
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$1,765,000
|
|
|
|
Total Assets
|
$3,855,000
|
|
|