Prepare the balance-sheet for Varun Inc. based on the following information: At
ID: 2695635 • Letter: P
Question
Prepare the balance-sheet for Varun Inc. based on the following information: At the end of year 2012, the company had cash balance worth $ 210,000, accounts payable of $522,000, current liability of $714,000, current assets of $984,000. Tangible Net Fixed Assets and Intangible Net Fixed Assets were worth $4,380,000 and $876,000 respectively. Long-term liabilities and Total Liabilities are respectively $2,568,000 and $3,282,000. Common stock is $582,000. Find: 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 b) Calculate the Common-size ratios:Explanation / Answer
1)total net fixed asset = $984000 +$4380000+$876000 =$6240000...........
2)total assets = 6240000 + 210000 + 582000= $ 7032000..............
3) total liabilities and owner's equity = 522000 + 3282000 =$3804000..............
4)accumulated retained earnings =$ 210000 + $ 582000 =$ 692000...........
5)notes payable = $522000...............
6)inventory balance =984000 + 582000 =$1566000..............
7)Common-size ratio = inventory /total asset = 1566000/7032000 =0.22