Question

The balances of select accounts of Stephanie Company as of December 31, 2016, are given below. What amount of total long-term assets would be shown on the balance sheet?

Answer 1

The total long-term assets on the balance sheet as of December 31, 2016, amount to $280,000, comprising property, plant, equipment ($150,000), and investments ($130,000).

Step-by-step explanation:

In analyzing Stephanie Company's balance sheet as of December 31, 2016, the total long-term assets amount to $280,000. This figure is derived from the summation of two key categories: property, plant, and equipment with a balance of $150,000, and investments totaling $130,000. Long-term assets hold significant importance in the realm of business, representing assets expected to contribute value over an extended period. The inclusion of property, plant, and equipment reflects the company's tangible assets, such as land, buildings, and machinery, which contribute to its operational capacity and potential for future earnings. On the other hand, investments indicate financial instruments or holdings with an expected long-term return, highlighting the company's strategic financial planning.

From a business perspective, accurately reporting long-term assets on the balance sheet is pivotal for stakeholders, including investors and creditors, as it offers insights into the company's ability to generate future cash flows and its overall financial health.

Understanding the composition of long-term assets aids in assessing the company's capital structure, risk profile, and investment potential. In essence, the $280,000 total long-term assets serve as a crucial metric for gauging Stephanie Company's financial stability and its capacity for sustained value creation.

Answer 2

The total long-term assets shown on the balance sheet can be calculated by adding the balances of select accounts: reserves, bonds, and loans.

Step-by-step explanation:

The total long-term assets shown on the balance sheet can be calculated by adding the balances of select accounts. In this case, the information provided includes the balances of reserves, bonds, and loans.To determine the total long-term assets, we can add the balances of the select accounts: reserves ($30), bonds ($50), and loans ($50). Therefore, the total long-term assets would be $30 + $50 + $50 = $130.