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Beth Nail: missing numbers in the illustrated balance sheet

Beth Nail discovered a piece of wet and partially burned balance sheet after her office was destroyed by fire. She could recall a current ratio of 1.75 and a debt to assets ratio of 45 percent

Assets

Current assets
Cash $ 36,000
Accounts receivable (A)
Inventory 63,000
Prepaid expenses 13,500
Total current assets (B)

Long-term assets
Building (C)
Less: Accumulated depreciation (45,000)
Total long-term assets 270,000

Total assets $ (D)

Liabilities and Stockholders' Equity

Liabilities
Current liabilities
Accounts payable $ 63,000
Notes payable (E)
Income tax payable 27,000
Total current liabilities 120,000

Long-term liabilities
Bonds payable 67,500
Mortgage payable (F)
Total liabilities (G)

Stockholders' equity
Common stock 135,000
Retained earnings (H)
Total stockholders' equity (I)

Total liabilities and stockholders' equity $(J)

Determine the missing numbers in the illustrated balance sheet and prepare a completed balance sheet in accordance with generally accepted accounting principles.

Solution Summary

Your tutorial is in Excel attached. Click in cells to see how to solve for missing pieces.

$2.19