pre class balance sheet

Categories a current asset b long term assets c

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: k Times. •  The company purchases new delivery vehicles it will use in Brooklyn. It pays $50,000 of the total vehicle cost of $80,000 at signing. •  Ajorneys have no2fied the company that a New York City resident, seriously injured by one of the company’s delivery vehicles in lower Manhajan, has sued the company for $10M. Company lawyers have predicted that the court is likely to find the company liable in the lawsuit, but the company carries sufficient insurance to cover the losses. •  Refer to above. Now assume the company carries no insurance against such losses. •  A two- week strike by employees has closed down newspaper publishing opera2ons. As a result, the company could not deliver subscrip2ons totaling $2M. 11 Current Liabili2es •  Accounts payable (obliga2ons to suppliers) •  Salaries/wages payable •  Rent payable •  Interest payable •  Current maturi2es of long- term debt Ø། How much debt will have to be paid off in coming year 12 Long- Term Liabili2es •  Notes Payable Ø། Money borrowed from banks •  Bonds Payable Ø། Money borrowed from investors •  Compan...
View Full Document

This document was uploaded on 03/06/2014 for the course 15 15.502 at MIT.

Ask a homework question - tutors are online