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

ย 
Accounts Receivable

$25,000.00

ย 
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

ย 
Other (Intangible Assets)

$2,000.00

ย 

Total Fixed Assets



$38,000.00



Total Assets



$88,000.00


ย  ย 

Liabilities & Shareholder Equities


Liabilities


Accounts Payable

$20,000.00

Taxes Payable

$7,500.00

ย 
Long-Term Loan

$15,000.00

ย 
ย  ย 

Total Liabilities



$42,500.00


ย 
ย  ย 
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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