Exercise – Balance Sheet

The Balance Sheet

Marketing and the Balance Sheet

Review the Balance Sheet below and answer the following questions:

1) What kind of assets are account receivables?
2) Is there sufficient cash on hand and accounts receivable to pay for taxes and accounts payable?
3) What percentage of fixed assets is represented by land ownership?

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

$45,500.00

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.