Answer – Balance Sheet

The Balance Sheet

Answer

1) Accounts receivable are current assets.
2) Yes, Accounts receivable and cash on hand total $35,000 while Taxes and accounts payable total only $27,500.
3) Land ownership represents 21% of the company’s fixed assets ($38,000)

Summary

As mentioned, a company’s origin, priorities and degree of success can be clearly gleaned by a review of It’s Balance Sheet. Not only can it reveal the past it can also highlight a prescription for suggested changes.

Balance Sheet Ending December 31st 2014.


Assets


Current Assets


Cash on Hand

$10,000.00

 
Accounts Receivable

$25,000.00

 
Inventory

$15,000.00


Total Current Assets



$50,000.00


Fixed Assets


Garage and Equipment

$40,000.00

Less Depreciation

($12,000.00)

Land Owned

$8,000.00

 
Other (Intangible Assets)

$2,000.00

 

Total Fixed Assets



$38,000.00



Total Assets



$88,000.00


   

Liabilities & Shareholder Equities


Liabilities


Accounts Payable

$20,000.00

Taxes Payable

$7,500.00

 
Long-Term Loan

$15,000.00

 
   

Total Liabilities



$42,500.00


 
   
Shareholder Equity


Common Stock

$45,000.00

Retained Earnings

0


Total Shareholder Equity



$45,500.00



Total Liabilities $ shareholder Equity



$88,000.00


 

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Tim Friesner

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.