The bookkeeper for Andy’s Country Music Bar went insane and left this incomplete
ID: 2473976 • Letter: T
Question
The bookkeeper for Andy’s Country Music Bar went insane and left this incomplete balance sheet. Andy’s working capital is $95,000 and its debt to assets ratio is 40 percent. Complete the balance sheet by supplying the missing amounts. (Round your answers to the nearest whole dollar amount. Omit the "$" sign in your response.)
Assets
Current Assets
Cash $21,000
Accounts Receivable 42,000
Inventory $
Prepaid Expenses 9,000
Total Current Assets $
Long-Term Assets Building $
Less: Accumulated Depreciation (39,000)
Total Long Term Assets 210,000
Total Assets $
Liabilities and Stockholder's Equities
Liabilities
Current Liabilities
Accounts Payable $
Notes Payable 12,000
Income Tax Payable 10,500
Total Current Liabilities 37,500
Long-Term Liabilities Mortgage Payable $
Total Liabilities $
Stockholders’ Equity
Common Stock 105,000
Retained Earnings $
Total Stockholders’ Equity $
Total Liabilities and Stockholders’ Equity $
Explanation / Answer
Net Working Capital = Current Assets - Current Liabilities
$95,000=$132,500- $37500
Explanation:
Net Working Capital = Current Assets - Current Liabilities
95,000= yet to be found - $37500
Current Assets = - 95,000 - $37500
Current Assets=$132,500
Total Current Liabilities =Accounts Payable +Notes Payable +Income Tax Payable
$37,500= Yet to be found+$12,000+ $10,500
$37500 - $22500= Accounts Payable
$$15,000== Accounts Payable
Current Assets =Cash + Accounts Receivable +Inventory $ +Prepaid Expenses
$132,500 = $21,000+42,000+yet be found +9,000
$132,500=$72,000 +Inventory
Inventory = $132,500-$72,000
Inventory=$60,500
____________________________________________________
Debt to assets ratio= Total Debt /Total Assets
40 % or 0.40 =Total Debt / $342,500
Total Debt=$342,500 *0.40
Total Debt=$137,000
_________________________________
Total Assets =Current Assets + Long Term Assets
=$132,500+210,000
=$342,500
Total Long Term Assets-Accumulated Depreciation =Long-Term Assets Building
210,000-39,000 =$171,000
_______________________________________________________
Long term debt= $137,000(Total Debt) -$37,500(current liabilities)
Long term debt=$99,500(mortgage payable)
To find out retained earning
Total Assets $ = Total Liabilities + Stockholders’ Equity
$342,500=$137,000 +Stockholders’ Equity
Stockholders’ Equity = $342,500 -$137,000
Retained Eaning=$205,500 (Stockholders’ Equity) - $105,000 (Common Stock)
=$100,500
_____________________________________________________________________________________
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