In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of Course Project 1. Let’s start with Exercise 1-17A. Read about Hombran Doughnuts and select one of the four requirements to answer.
Hombran Doughnuts has current assets of $290 million; property, plant, and equipment of $490 million; and other assets totaling $150 million. Current liabilities are $150 million and long-term liabilities total $310 million.
1. Use these data to write Hombran Doughnuts’ accounting equation.
2. How much in resources does Hombran have to work with?
3. How much does Hombran owe creditors?
4. How much of the company’s assets do the Hombran stockholders actually own?