Balance Sheet - Fill in the Missing numbers
The bookkeeper for Lowell's Country Music Bar left this incomplete balance sheet. Lowell's working capital is 90,000 and its debt to assets ratio is 40 percent.
Complete the balance sheet by supplying the missing amounts.
(see attached)
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Solution fills in missing numbers from a balance sheet by using the working capital and the debt to equity ratio. Attached as Excel.
Determine the missing amounts within the four different companies' financial information as follows...
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Problem P1-5A
Instructions:
Determine the missing amounts within the four different companies' financial information as follows:
(a)
Jan 01, 02 Judd Company Hefel Company Marpe Company Morgan Company
Assets 92,000 110,000 (g) 160,000
Liabilities 50,000 (d) 75,000 (j)
Stockholders' equity (a) 60,000 57,000 90,000
Dec 31, 02
Assets (b) 150,000 200,000 (k)
Liabilities 55,000 68,000 (h) 80,000
Stockholders' equity 58,000 (e) 130,000 162,000
Stockholders' equity
changes in year:
Add'l investments (c) 12,000 10,000 15,000
Dividends 25,000 (f) 14,000 20,000
Total revenues 347,000 420,000 (i) 530,000
Total expenses 320,000 385,000 350,000 (l)
(a) Formula (g) Formula
(b) Formula (h) Formula
(c) Formula (i) Formula
(d) Formula (j) Formula
(e) Formula (k) Formula
(f) Formula (l) Formula
(b) Prepare the retained earnings statement for Judd Company. Assume that the beginning
balance of retained earnings was zero.
JUDD COMPANY
Retained Earnings Statement
For the Month Ended December 31, 2002
Retained earnings, January 1
Add: Net income Value
Formula
Less: Dividends Value
Retained earnings, December 31 Formula
(c) Write a memorandum explaining the sequence for preparing financial statements and
the interrelationship of the retained earnings statement to the income statement and
the balance sheet.