Account Balance 12/31/2013 Balance 12/31/2014 Accumulated depreciation $2,021 $2
ID: 2609064 • Letter: A
Question
Account Balance 12/31/2013 Balance 12/31/2014
Accumulated depreciation $2,021 $2,678
Accounts payable $1,806 $2,053
Accounts receivable $2,490 $2,682
Cash $1,303 $1,145
Common stock $4,981 $4,981
Inventory $5,796 $6,022
Long-term debt $7,803 $8,195
Plant, property, and equipt. $8,393 $9,205
Retained earnings $1,371 $1,147
a.construct a balance sheet for 2013 and 2014.
b.list all the working capital accounts.
c.find the net working capital for the years ending 2013 and 2014.
d.calculate the change in net working capital for the year 2014.
Explanation / Answer
a. Balance Sheet
Assets
Current Assets:
12/31/2013
12/31/2014
Cash
1303
1145
Accounts Receivable
2490
2682
Inventory
5796
6022
Total Current Assets
9589
9849
Long-Term Assets:
Plant, property, and equipt
8393
9205
Accumulated depreciation
-2021
-2678
6372
6527
Total Assets
15961
16376
Liabilities
Current Liabilities:
12/31/2013
12/31/2014
Accounts Payable
1806
2053
Long-Term Liabilities:
Long-term Debt
7803
8195
Total Liabilities
9609
10248
Owner’s Equity:
Common Stock
4981
4981
Retained Earnings
1371
1147
Total Owner’s Equity
6352
6128
Total Liabilities and Owners Equity
15961
16376
b. Working Capital Accounts
1
Cash
Current Assets
2
Accounts Receivable
3
Inventory
4
Accounts Payable
Current Liabilities
c. Networking Capital
Current Assets:
12/31/2013
12/31/2014
Cash
1303
1145
Accounts Receivable
2490
2682
Inventory
5796
6022
Total Current Assets
9589
9849
Less: Current Liabilities
Accounts Payable
1806
2053
Net Working Capital
7783
7796
d. Changes in Net Working capital for 2014
Particulars
12/31/2013
12/31/2014
Net Working Capital
7783
7796
Change in Net Working Capital for 2014 (7796-7783) i.e., Increase in working capital
13
a. Balance Sheet
Assets
Current Assets:
12/31/2013
12/31/2014
Cash
1303
1145
Accounts Receivable
2490
2682
Inventory
5796
6022
Total Current Assets
9589
9849
Long-Term Assets:
Plant, property, and equipt
8393
9205
Accumulated depreciation
-2021
-2678
6372
6527
Total Assets
15961
16376
Liabilities
Current Liabilities:
12/31/2013
12/31/2014
Accounts Payable
1806
2053
Long-Term Liabilities:
Long-term Debt
7803
8195
Total Liabilities
9609
10248
Owner’s Equity:
Common Stock
4981
4981
Retained Earnings
1371
1147
Total Owner’s Equity
6352
6128
Total Liabilities and Owners Equity
15961
16376
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