National Shops, Incorporated reported the following amounts on its balance sheet as of December 31, 2022:

Inventory	$ 325,000
Notes payable	100,000
Cash	150,000
Common stock	750,000
Net property, plant and equipment	600,000
Accounts receivable	30,000
Accounts payable	45,000
Retained earnings	?

Required:1.What is the amount of National's total assets as of December 31, 2022?
2.Identify the items listed above that are liabilities.
3.What is the amount of National's retained earnings as of December 31, 2022?
4.Prepare a balance sheet for National at December 31, 2022.
5.National wishes to purchase merchandise from your company on account. The amount of the purchases would probably be about $10,000 per month, and the terms would require National to make payment in full within 30 days. Would you recommend that your company grant credit to National under these terms? Explain the reasoning for your response.

Answer rating: 100% (QA)

1 The amount of Nationals total assets as of December 31 2022 is calculated as follows Total Assets ... View the full answer