Prepare the balance-sheet for LaVale Inc. based on the following information: At
ID: 2641860 • Letter: P
Question
Prepare the balance-sheet for LaVale Inc. based on the following information: At the end of year 2013, the company had cash balance worth $ 220,000, accounts payable of $500,000, total current liability of $720,000, total current assets of $960,000, accounts receivable of $280,000. Tangible Net Fixed Assets and Intangible Net Fixed Assets were worth $4,000,000 and $500,000 respectively. Long-term liabilities and Total Liabilities are respectively $2,480,000 and $3,200,000. Common stock is $600,000.
a) Find out the following components:
i) Total Net Fixed Asset, ii) Total Assets, iii) Total Liabilities & Owner's Equity,
iv) Accumulated Retained Earnings, v) Notes Payable, and vi) Inventory balance
Explanation / Answer
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Total Net Fixed Asset = 4000000+500000
=$4500000
Total Assets = $5460000
Total Liabilities & Owner's Equity = $5460000
Accumulated Retained Earnings = 5460000-3200000-600000
=$1660000
Notes Payable = 720000-500000
=$204000
Inventory balance =984000-200000
=$784000
Assets $ Liabilities $ Current Assets Current Liabilities cash 220,000 accounts payable 500000 Acc recievable 280,000 Notes payable 204000 720000 Inventory 460,000 960000 Non-current liabilities Fixed Assets Long-term liabilities 2480000 2,480,000 Tangible Net Fixed Assets 4,000,000 Total Liabilities 3,200,000 Intangible Net Fixed Assets 500,000 4,500,000 Stock holder equity Common Stock 600000 Retained Earnings 1,660,000 Total Assets 5,460,000 Total Liabilities and Equity 5,460,000