Critical Thinking Problem 13.2 (Static) Classified Balance Sheet LO 13-3 Brandon Mandava is the owner of...

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Critical Thinking Problem 13.2 (Static) Classified Balance Sheet LO 13-3 Brandon Mandava is the owner of Royal Jewels, a store specializing in gold, platinum, and special stones. During the past year, in response to increased demand, Brandon doubled his selling space by expanding into the vacant building space next door to his store. This expansion has been expensive because of the need to increase Inventory and to purchase new store fixtures and equipment, Including carpeting and state-of-the-art built-in fixtures. Brandon notes that the company's cash position has decreased and he is worried about future demands on cash to finance the growth. Brandon presents you with a statement showing the assets, liabilities, and his equity for year-end 20X0 and 20X1 and asks your opinion on the company's ability to pay for the recent expansion. He did not have income and expense data available at the time. He commented that he had not made any new investment in the business in the past two years and was not financially able to do so presently. The information presented is shown below: Assets Cash Accounts Receivable Inventory Prepaid Expenses Store Fixtures and Equipment Total Assets Liabilities and Owner's Equity December 31, 20X0 $ 160,000 45,000 105,000 6,000 180,000 $ 496,000 December 31, 20x1 $ 45,000 91,500 234,000 9,000 395,000 $ 774,500 Liabilities Notes Payable (due in 4 years) $ 90,000 Accounts Payable Salaries Payable 137,000 18,000 Total Liabilities $ 245,000 251,000 $ 496,000 Owner's Equity Brandon Mandava, Capital Total Liabilities and Owner's Equity Required: $ 255,000 176,000 19,500 $ 450,500 324,000 $ 774,500 Prepare classified balance sheets for Royal Jewels for December 31, 20X0, and December 31, 20X1. (Ignore depreciation.) Critical Thinking Problem 13.2 (Static) Classified Balance Sheet LO 13-3 Brandon Mandava is the owner of Royal Jewels, a store specializing in gold, platinum, and special stones. During the past year, in response to increased demand, Brandon doubled his selling space by expanding into the vacant building space next door to his store. This expansion has been expensive because of the need to increase Inventory and to purchase new store fixtures and equipment, Including carpeting and state-of-the-art built-in fixtures. Brandon notes that the company's cash position has decreased and he is worried about future demands on cash to finance the growth. Brandon presents you with a statement showing the assets, liabilities, and his equity for year-end 20X0 and 20X1 and asks your opinion on the company's ability to pay for the recent expansion. He did not have income and expense data available at the time. He commented that he had not made any new investment in the business in the past two years and was not financially able to do so presently. The information presented is shown below: Assets Cash Accounts Receivable Inventory Prepaid Expenses Store Fixtures and Equipment Total Assets Liabilities and Owner's Equity December 31, 20X0 $ 160,000 45,000 105,000 6,000 180,000 $ 496,000 December 31, 20x1 $ 45,000 91,500 234,000 9,000 395,000 $ 774,500 Liabilities Notes Payable (due in 4 years) $ 90,000 Accounts Payable Salaries Payable 137,000 18,000 Total Liabilities $ 245,000 251,000 $ 496,000 Owner's Equity Brandon Mandava, Capital Total Liabilities and Owner's Equity Required: $ 255,000 176,000 19,500 $ 450,500 324,000 $ 774,500 Prepare classified balance sheets for Royal Jewels for December 31, 20X0, and December 31, 20X1. (Ignore depreciation.)