Ed's Tobacco Shop has total assets of $100 million. Fifty percent of these assets are financed with debt of which $37 million is current liabilities. The firm has no preferred stock but the balance in common stock and paid-in surplus is $32 million. Using this information what is the balance for long-term debt and retained earnings on Ed's Tobacco Shop's balance sheet?
A) $18 million; $27 million
B) $12 million; $12 million
C) $14 million; $29 million
D) $13 million; $18 million

Question

Quizplus · Accepted Answer

The Answer of Ed's Tobacco Shop has total assets of $100 million. Fifty percent of these assets are financed with debt of which $37 million is current liabilities. The firm has no preferred stock but the balance in common stock and paid-in surplus is $32 million. Using this information what is the balance for long-term debt and retained earnings on Ed's Tobacco Shop's balance sheet?
A) $18 million; $27 million
B) $12 million; $12 million
C) $14 million; $29 million
D) $13 million; $18 million

Ed's Tobacco Shop Has Total Assets of $100 Million