ACC$-486$ Balance Sheet Activity

Activity $2-$ Balance Sheet

Purpose: $$

$1.$ Understand the information provided by the balance sheet.

$2.$ Identify asset, liability, and stockholders$$ equity accounts reported on the balance sheet.

$3.$ Understand the accounting equation.

Cool Lope $$ Tropical Smoothies and Shaved Ice

$1.$ Identify the $20$X$3$ accounting equation amounts for Cool Lope, Inc. using the information above.

Assets $\_\_\_\_\_\_\_\_=$ Liabilities $\_\_\_\_\_\_\_\_\_\_\_+$ Stockholders$$ Equity $\_\_\_\_\_\_\_\_.$

$$

$2.$ Assets can either be financed with $\_\_\_\_\_\_\_\_\_\_\_$or$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$$

$3.$ Will the accounting equation hold true for every corporation? $($Yes $/$ No $/$ Can$$t tell$)$

$$ Why?

$$

$4.$ Cool Lope, Inc. is primarily financed with $($liabilities $/$ stockholders$$ equity$).$

$$ How can you tell?

$$

$5.$ What is the definition of a current asset?

$$

$6.$ The following is a current asset $($inventory $/$ delivery truck $/$ taxes payable$).$

$$

$$

$7.$ What is the Definition of a Current Liability?

$$

$$

$8.$ The following is a current liability $($bond $/$ accounts payable $/$ accounts receivables$).$

$$

$9.$ An example of a long$-$term assets is $($common stock $/$ equipment $/$ building $/$ prepaid expenses$).$ Select all that apply.

$$

$10.$ What is the definition of retained earning?

$$

$$

Now: Examine the annual report for the company you have selected with your CLC team for your $$Financial Statement Analysis Report,$$ and respond to the following questions using the most recent balance sheet provided.

$$

$1.$ What is the total for assets? Liabilities? Owners$$ equity?

$$

$2.$ What is the amount of accounts receivables?

$$

$$

$3.$ What is the amount of inventory? What inventory valuation method $($LIFO $/$ FIFO $/$ Average cost$/$ Specific Identification$)$ do they use?

$$

$4.$ What is the total for current assets? Long$-$term assets?

$$

$5.$ What current asset has the largest balance? What Long$-$term asset has the largest balance?

$$

$6.$ What is the total for current liability? Long$-$term liability?

$$

$7.$ What is total stockholders' equity? What is the amount of retained earnings?

$$

$8.$ Assets are financed by either liabilities $($debt$)$ or stockholders$$ equity. Which is larger? Debt or stockholders equity for your company?