Ch 4, Ques 4.1
The difference between the income statement and balance sheet in regards to timing is the following: * An income statement is a report that contains information in regards to an organizations’ assets and financing in order to obtain those assets that is collected over a certain period of time * A balance sheet is snapshot of the financials for that organization (with assets on the left and liabilities on the right side) for that particular date that was requested
Ch 4, Ques 4.5 a, b, c a) The difference between long term investments and property and equipment on the balance sheet are as follows: * Long term investments are reported on the balance sheet at a fair market value instead of the purchase price …show more content…
uity
500,000= Liab + 350000 Liab = 150,000
575000= Liab + 380000 Liab = 195000
380000 – 195000 = $45,000 Liability
575000 – 500000 = $75000 Asset growth
Ch4, Problem 4.3 a) 80000 – 50000 = 30000 equity b) 55000 + 45000 = 100,000 Assets c) 330,000 Total revenues because it is not-for profit d) 100000 – 60000 = 40,000 liabilities e) 130000 – 62000 = 68,000 equity f) 400,000 Total expenses because it is not-for profit g) 75000 + 45000 = 120,000 Assets h) 180000 – 110000 = 70000 Liabilities i) 360,000 Total revenues because it is not-for profit
Ch 4, Problem 4.4
Assets
| | | Current Assets | | | Cash in bank | | $ 30,000 | Accounts receivable | | 60,000 | Inventory | | - | Prepaid expenses | | - | Other current assets | | 100,000 | Total Current Assets | | $ 190,000 | | | | Fixed Assets | | | Machinery & equipment | | $ 150,000 | Furniture & fixtures | | - | Leasehold improvements | | - | Land & buildings | | - | Other fixed assets | | 40,000 | (LESS accumulated depreciation on all fixed assets) | | - | Total Fixed Assets (net of depreciation) | | $ 190,000 | | | | Other Assets | | | Intangibles | |