Following is a scrambled list of accounts from the income statement and balance sheet of Belmond, Inc.:
Question:
Following is a scrambled list of accounts from the income statement and balance sheet of Belmond, Inc.:
Inventory ...........................................$ 6,500
Common stock .....................................45,000
Cash .................................................16,550
Operating expenses ................................ 1,350
Short-term notes payable ......................... 600
Interest expense .................................... 900
Depreciation expense ............................. 500
Sales ................................................12,800
Accounts receivable .............................. 9,600
Accounts payable ................................. 4,800
Long-term debt ....................................55,000
Cost of goods sold ............................... 5,750
Buildings and equipment ........................ 122,000
Accumulated depreciation .......................34,000
Taxes ................................................ 1,440
General and administrative expense .............. 850
Retained earnings .................................. ?
a. What is the firm's net working capital?
b. Complete an income statement and a balance sheet for Belmond.
c. If you were asked to complete parts a and b as part of a training exercise, what could you tell your boss about the company's financial condition based on your answers?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
First lets categorize the accounts we were given Note that expenses and revenues go on the income statement while assets liabilities and equity go on ...View the full answer
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
