Would company have had to raise more capital

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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

($685,000)

   

Cost Less Depreciation

$1,765,000

   

Total Assets

$3,855,000

   

Reference no: EM13535093

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