Explore BrainMass

Explore BrainMass

    Ending balance sheet

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:56 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/ending-balance-sheet-70727

    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 ...

    Solution Summary

    This provide the steps to find the ending balance sheet.

    $2.49

    ADVERTISEMENT