Balance Sheet Chuck Enterprises has current assets of 300,000 and total assets of 750,000 It also has current liabilities of 125,000 common equity of 250,000 and retained earnings of 85,000 How much long-term debt and fixed assets does the firm have?

To find the long-term debt and fixed assets, we can use the accounting equation:<br /><br />\[<br />\text{Total Assets} = \text{Total Liabilities} + \text{Total Equity}<br />\]<br /><br />Given:<br />- Total Assets = $750,000<br />- Current Assets = $300,000<br />- Current Liabilities = $125,000<br />- Common Equity = $250,000<br />- Retained Earnings = $85,000<br /><br />First, calculate the Total Equity:<br /><br />\[<br />\text{Total Equity} = \text{Common Equity} + \text{Retained Earnings}<br />\]<br /><br />\[<br />\text{Total Equity} = $250,000 + $85,000 = $335,000<br />\]<br /><br />Next, calculate the Total Liabilities:<br /><br />\[<br />\text{Total Liabilities} = \text{Total Assets} - \text{Total Equity}<br />\]<br /><br />\[<br />\text{Total Liabilities} = $750,000 - $335,000 = $415,000<br />\]<br /><br />Now, find the Long-Term Debt:<br /><br />\[<br />\text{Long-Term Debt} = \text{Total Liabilities} - \text{Current Liabilities}<br />\]<br /><br />\[<br />\text{Long-Term Debt} = $415,000 - $125,000 = $290,000<br />\]<br /><br />Finally, calculate the Fixed Assets:<br /><br />\[<br />\text{Fixed Assets} = \text{Total Assets} - \text{Current Assets}<br />\]<br /><br />\[<br />\text{Fixed Assets} = $750,000 - $300,000 = $450,000<br />\]<br /><br />So, the firm has $290,000 in long-term debt and $450,000 in fixed assets.