Analyze for liquidity and solvency. Tell me what you feel about their financial position and why. Submit the copy of the balance sheet

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Innovative Products, Inc. Balance Sheet As at December 31, 2013 Assets Current Assets Cash $722,500 Accounts Receivable $900,000 $100,000 $500,000 Marketable Securities Inventory Prepaid Expenses 30,000 Total Current Assets $2,252,500 Property, Plant, and Equipment Land $900,000 Buildings $1,500,000 $1,100,000 $400,000 $500,000 $100,000 Machinery Furniture and Fixtures Vehicles Accumulated depreciation $4,300,000 $6,552,500 Net Property Plant and Equipment Total Assets Liabilities Current Liabilities $700,000 $200,000 Accounts Payable Notes Payable Accrued Expense $150,000 Income Taxes Payable $100,000 Total Current Liabilities $1,150,000 Long-term Liabilities Long-term Debt $3,300,000 Total Liabilities $4,450,000 Shareholder's Equity $300,000 $1,300,000 Preferred Stock Common Stock Retained Earnings $502,500 Total Equity $2,102,500 Total Liabilities & Shareholder's Equity $6,552,500 Innovative Products, Inc. Balance Sheet As at December 31, 2013 Assets Current Assets Cash $722,500 Accounts Receivable $900,000 $100,000 $500,000 Marketable Securities Inventory Prepaid Expenses 30,000 Total Current Assets $2,252,500 Property, Plant, and Equipment Land $900,000 Buildings $1,500,000 $1,100,000 $400,000 $500,000 $100,000 Machinery Furniture and Fixtures Vehicles Accumulated depreciation $4,300,000 $6,552,500 Net Property Plant and Equipment Total Assets Liabilities Current Liabilities $700,000 $200,000 Accounts Payable Notes Payable Accrued Expense $150,000 Income Taxes Payable $100,000 Total Current Liabilities $1,150,000 Long-term Liabilities Long-term Debt $3,300,000 Total Liabilities $4,450,000 Shareholder's Equity $300,000 $1,300,000 Preferred Stock Common Stock Retained Earnings $502,500 Total Equity $2,102,500 Total Liabilities & Shareholder's Equity $6,552,500

Answer rating: 100% (QA)

Answer Explanation PARTICULAR NOTE NO AMOUNT 1EQUITY LIABILITIES SHARE HOLDER FUND SHARE CAPITAL 1 1... View the full answer