On December 31, 20, you present your balance sheet, shown below, to the manager of the...

 

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On December 31, 20, you present your balance sheet, shown below, to the manager of the local bank with the hope of obtaining a small bank loan. Assets Cash $ 5.000 Accounts Receivable 25 000 Land 10 000 Total Liabilities BALANCE SHEET DECEMBER 31, 20- Liabilities Accounts Payable Mortgage Payable $17.000 35 000 $52.000 Building 30 000 Equipment 20 000 Owner's Equity 38 000 Total Assets $90 000 Total Liabilities and Equity $90 000 During your conversation with the manager, certain facts are brought out: a. About $8 000 owing from customers is considerably overdue. b. A mortgage payment of $4 000 is due on January 31. C. All creditors' accounts are due within 30 days. d. The average earnings of the business for the past five years have been very good. On December 31, 20, you present your balance sheet, shown below, to the manager of the local bank with the hope of obtaining a small bank loan. Assets Cash $ 5.000 Accounts Receivable 25 000 Land 10 000 Total Liabilities BALANCE SHEET DECEMBER 31, 20- Liabilities Accounts Payable Mortgage Payable $17.000 35 000 $52.000 Building 30 000 Equipment 20 000 Owner's Equity 38 000 Total Assets $90 000 Total Liabilities and Equity $90 000 During your conversation with the manager, certain facts are brought out: a. About $8 000 owing from customers is considerably overdue. b. A mortgage payment of $4 000 is due on January 31. C. All creditors' accounts are due within 30 days. d. The average earnings of the business for the past five years have been very good.

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a Overdue Accounts Receivable Its concerning that 8000 from customers is considerably overdue This i... View the full answer