Suppose PAPAs Bottle Manufacturing has planned to start their business from October 1, 2020 and wanted to
Question:
Suppose PAPA’s Bottle Manufacturing has planned to start their business from October 1, 2020 and wanted to include following assets in balance sheet as at December 31, 2020:\r\n
Cash ........................................$ 550,000
Accounts Receivable.................111,000
Inventory....................................430,000
Office Equipment........................47,000
Computer Equipment.................25,000
Furniture & Fixture....................799,000
Machinery...............................5,750,000
Instructions:
a. If you are the finance manager of “PAPA’s Bottle Manufacturing”, how many sources of funds you have to finance above assets? Explain
b. How many liability options, you have to support your funding requirements?
- c. Prepare balance sheet with appropriate liability (both internal and external) to match with above assets.
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak