Description
Below find a balance sheet for VWV Company.
VWV Company | |||||||||||||
Balance Sheet | |||||||||||||
December 31, 20XX | |||||||||||||
Assets | Liabilities | ||||||||||||
Current assets | Current liabilities | ||||||||||||
Cash | $72,000 | Accounts payable | $12,000 | ||||||||||
Accounts receivable | 18,000 | Interest payable | 12,000 | ||||||||||
Interest receivable | 1,000 | ||||||||||||
Inventory | 60,000 | ||||||||||||
Total current assets | $151,000 | Total current liabilities | $24,000 | ||||||||||
Long-term assets | Long-term liabilities | ||||||||||||
Equipment (net of depreciation) | $128,000 | Note payable | 100,000 | ||||||||||
Total long-term assets | $128,000 | Total long-term liabilities | $100,000 | ||||||||||
Equity | |||||||||||||
Common stock | 10,000 | ||||||||||||
Paid-in capital | 50,000 | ||||||||||||
Retained earnings | 95,000 | ||||||||||||
Total equity | $155,000 | ||||||||||||
Total assets | 279,000 | Total liabilities and equity | $279,000 | ||||||||||
Required:
- Recreate the balance sheet in an Excel spreadsheet. Use cell formulae to add and subtract numbers. Add a column next to the balance sheet for answers to the questions listed below.
Questions:
- Is accounts payable larger or smaller than accounts receivable? What is the difference? What do the numbers indicate? Explain.
- What does "equipment net of depreciation" mean?
- Are payables short-term or long-term?
- Determine total liabilities.
- Determine net short-term assets or liabilities.
- Determine the total amount owed by VWV at the end of the year.
- How do we know that the above is a corporate (not a sole proprietor) balance sheet?
SLP Assignment Expectations
Submit the Excel spreadsheet. All information should be part of the spreadsheet. Written comments should be brief and refer to the balance sheet. Both content and presentation matter.
Explanation & Answer
Attached.
VWV Company
Balance Sheet
As at December 31, 20XX
Assets
Current Assets
Cash
Accounts receivable
Interest receivable
Inventory
Total Current Assets
Amount ($)
72,000
18,000
1,000
60,000
151,000
Non-Current Assets
Equipment (net of depreciation)
Total Assets
The accounts receivables is larger
Equipment net of ...
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