Section 1. Balance Sheet (Chapter 11 Pg 277) The balance sheet provides a picture of the business's financial position at a particular point in time generally at the end of a financial period (e.g., month, quarter, or year). It encompasses everything the company owns (assets) or owes (liabilities), as well as the investments into the company by its owners and the accumulated earnings or losses of the company (equity). The balance sheet equation is given by: Assets = Liabilities + Shareholder equity An example of a balance sheet is provided below for ABC Construction company. BALANCE SHEET of ABC ConstructionA2:D29 Company ASSETS Current Assets (000s) (K) Cash 25 Account receivable 53 Inventory 80 A Total Current Assets (A) SR Fixed Assets Machinery 40 Less: Accumulated Depreciation -25 Equipment 30 Less: Accumulated Depreciation -18 B Total Fixed Assets (B) SR 158 27 TOTAL ASSETS (C=A+B) SR 185 (000s) (K) 60 35 LIABILITIES Current Liabilities (short term credit) Accounts Payable Notes Payable D Total Current Liabilities Long-term Liabilities (long term credit) Notes Payable E Total Long time Liabilities SR 95 40 SR 40 I F TOTAL LIABILITIES (F=D+E) SR 135 G SHAREHOLDER EQUITY (G=C-F) SR 50 Question 1: SIVA Rental Car Company based in Madinah owns a total number of 100 cars. The value of each car at the beginning of year 2021 was SR XX,000. There is a depreciation per year of 10% in the car's value per year. The company possesses a cash of 50K at the end of 2021 and 80K at the end of 2022. If the car company owes Y,000 in short term loans and 2,000 in long term loans, prepare the Annual Balance Sheet for year 2021 and 2022. Assume a 10% annual increase on the loans. Example: Student ID 320029 The following example is shown below. Do it for your own Student ID. XX= last two digits of the Student ID Y=10* Second last digit of the Student ID (If it is zero take 1) Z=10* Third last digit of the Student ID (If it is zero take 1) Example: Student ID 390029: XX=29, Y=20, Z=10 BALANCE SHEET of SIVA Rental Car Company (Example Student ID 320029) XX 29 Y 20 Z 10 ASSETS 2021 2022 Current Assets Cash (000s) (K) 50 80 Account receivable 0 Solo 8 0 SR 50 SR 80 290 Inventory Total Current Assets (A) Fixed Assets Cars (XX*unit price for first year) Less: Accumulated Depreciation Equipment Less: Accumulated Depreciation Total Fixed Assets (B) 261 -26.1 -29 0 ol B SR 261 SR 234.9 TOTAL ASSETS (C=A+B) SR 311 SR 314.9 (000s) (K) 0 0 20 22 LIABILITIES Current Liabilities (short term credit) Accounts Payable Notes Payable (Y) (10% annual inc) D Total Current Liabilities Long-term Liabilities (long term credit) Notes Payable E Total Long time Liabilities (Z) (10% inc) SR 20 SR 22 11 10 SR - 10 SR 11 F TOTAL LIABILITIES (F=D+E) SR 30 SR 33 SHAREHOLDER EQUITY (GEC-F) SR 281 SR 281.9 PUT YOUR SOLUTION HERE BALANCE SHEET of SIVA Rental Car Company (Student ID: XX Y z ASSETS 2021 2022 Current Assets (000s) (K) Cash 0 0 0 0 A SR SR Account receivable Inventory Total Current Assets (A) Fixed Assets Cars (XX*unit price for first year) Less: Accumulated Depreciation Equipment Less: Accumulated Depreciation Total Fixed Assets (B) 0 0 B SR SR TOTAL ASSETS (C=A+B) SR SR (000s) (K) 0 0 LIABILITIES Current Liabilities (short term credit) Accounts Payable Notes Payable (Y) (10% annual inc) D Total Current Liabilities Long-term Liabilities (long term credit) Notes Payable E Total Long time Liabilities (Z) (10% inc) SR SR SR SR F TOTAL LIABILITIES (F=D+E) SR SR G SHAREHOLDER EQUITY (G=C-F) SR SR