Purchase Solution

Ending balance sheet

Not what you're looking for?

Ask Custom Question

Prepare basic financial statements.

Description of activity

Using the following beginning balance sheet and income statement, facilitate the creation of an ending balance sheet.

Beginning Balance Sheet Income Statement

Cash $100 Acct Pay $150 Sales $ 2,500

Acct Rec $1,350 Notes Pay $800 CGS $ 1,350

Inventory $450 Gr Profit $ 1,150
Oper Exp $ 350
EBITDA $ 800

Equipment $750 Term Debt $2,000 Depr Exp $ 250

Plant $1,000 EBIT $ 550

Land $ 500 Equity $1,200 Int Exp $ 300

Total $4,150 Total $4,150 Pre-Tax Inc$ 250
Tax $ 100
Net Inc $ 150

Assume the level of accounts receivable, inventory and accounts payable remain unchanged, and prepare an ending balance sheet.

Discuss what management decisions may be warranted before closing the books with respect to additional borrowing or debt repayment. Try and take a stab at this without looking at how others have responded. When you are done look through other responses and comment on what makes sense, what doesn't.

Purchase this Solution

Solution Summary

This provide the steps to find the ending balance sheet.

Solution Preview

Prepare basic financial statements.

Description of activity

Using the following beginning balance sheet and income statement, facilitate the creation of an ending balance sheet.

Beginning Balance Sheet Income Statement

Cash $100 Acct Pay $150 Sales $ 2,500

Acct Rec $1,350 Notes Pay $800 CGS ...

Purchase this Solution


Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Operations Management

This quiz tests a student's knowledge about Operations Management

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.