Can you please help me on finding answers from Part1. n. 1-9? Thank you! Part I.
ID: 2419658 • Letter: C
Question
Can you please help me on finding answers from Part1. n. 1-9? Thank you!
Part I. - Balance Sheet (40 points) Tao Zhang the owner of the Zhang, a small lodgin questions. He is able to present you with the condensed balance sheets g operation, has asked for your help in answering a few selected questions. He is able to present you with the condensed balance sheets and some additional information, as follows: as follows: The Zhang Condensed Balance Sheets December 31, 20X1 and 20x2 20X1 20X2 $ 10,000 12,000 19,500 10,000 Cash Accounts receivable Investments (long-term) Equipment Accumulated depreciation 26,500 10,000 200,000 350,000 (20.000) (80.000) Total assets $226,500 S 311.500 Current liabilities: S 13,000 19,000 15,000 Accounts payable Mortgage payable (current) Dividends payable 10,000 10,000 17,000 Noncurrent liabilities: 70,000 110,000 Mortgage payable Common stock Treasury stock Retained earnings 60,000 100,000 (10,000) (30,000) 80.500 73,500 Total liabilities and owners' equity $ 226,500 $311,500 Additional information regarding activities for 20X2 Equipment costing $20,000 and depreciated by $10,000 was sold for $12,000 a. Long-term investments costing $10,000 were sold for $8,000. Comm investing activities during 20X2. b. on stock was sold and long-term debt was borrowed during 20X2. There were no noncash financing or c. d. Dividends declared in 20X2 were not paid in 20X2. e. Assume all current liabilities are paid on a timely basis. f. Assume retained earnings is affected only by net earnings and dividends declaredExplanation / Answer
Solution:
Working-
1. Investment purchased are calculated as - Ending balance + Sold - Beginning balance = Purchased investment
2. Net working capital has been calculated using - Current Assets - Current liabilities
3. Book value = Value of fixed assets - Depreciation
1 Amount of Common Stock at the beginning - 2001 60,000 2 Amount on invesments purchased during the year -2001 10,000 3 Amount of nect working capital - 2001 3500 4 Book value of fixed assets at the end of 2001 180,000 5 Amount of mortgage loan excluding interest payment -2002 110,000