The following is a balance sheet for “AGE IN PLACE”, a private consulting business specializing in older adult independent living, health, and lifestyle (anyone really wants to start a business? – get in touch with me – I’m interested in developing a consulting business related to one or more of the following:
health, recreation/leisure, aging, community, physical activity or disability, org/admin). Some of the information on the balance sheet is missing. Using the information provided in the Balance Sheet, answer the corresponding questions. 

MAKE SURE YOU EXPLAIN HOW YOU DETERMINED THE ANSWER.

ASSETS
Current assets
Cash and cash equivalents 426
Short-term investments -
Accounts receivable 98,406
Bad Debt -
Inventories 62,800
Total current assets $ ???

Fixed assets
Property, buildings, and equipment 430,000
Accumulated depreciation (19000)
Total fixed assets $ ???

Other assets
Long-term cash investments -
Equity investments -
Other assets -
Total other assets $ - ???
Total assets $ ???

LIABILITIES & OWNERS' EQUITY
Current liabilities
Accounts payable (26,440)
Short-term bank loan (6,650)
Total current liabilities $ ???

Noncurrent/Fixed Liabilities
Long-term debt (380,000)
Total other liabilities $ (380,000)
Total liabilities ???
Total owners' equity ???
Total liabilities + owners' equity ???
Note: dashes (-) = 0; brackets = negative numbers

Requirements

1. 1) Does the company have money owed that it doesn’t expect to get paid back?
    2) How much money does Age in Place owe to other companies for products or services purchased? What line item/category did you look at to answer this question?
   3) In terms of inventories, do you think the inventories are high or low, why?
2. 4) Does the company’s fixed assets include land?
   5) Are Age in Place’s books balanced? Answer the following guided questions to determine the
   response.
   a) What are the Total Assets? SHOW WORK and explain
   
   b) What are Total Liabilities?
   
   c) What is Equity?
   
   d) What are “Total Liabilities + Equity”?
   
   e) Are the books balanced (i.e., does “Total Liabilities + Equity” = Total Assets)?
   
   6) Looking at the balance sheet, what are the strengths of the company?
   
   7) Looking at the balance sheet, what are the weaknesses of the company?
   
   8) Would you invest in this company? Why or why not?

Answer rating: 100% (QA)

1 No the corporation does not owe money to which it does not anticipate to be reimbursed As can be s... View the full answer