You are preparing a balance sheet for A Cake Too Far, a small local bakery. The

Question

You are preparing a balance sheet for A Cake Too Far, a small local bakery. The owner lists for you their assets and liabilities. They have $4,500 cash, and an additional $1,675 in accounts receivable. They have a total of $1,200 in accounts payable, as well as $1,890 in wages payable. The business has a current inventory worth $375, and food and baking supplies worth $1,450. The bakery has a total of $15,400 on its mortgage for the property it sits on. They also have $18,500 in business equipment they own, and owe $1,600 in loans for new equipment. According to this list, what are the totals of assets and liabilities for the business?

Explanation / Answer

Assets Liabilities Current Assets Current Liabilities Cash $      4,500.00 Accounts Payable $                 1,200.00 Accounts Receivable $      1,675.00 Wages Payable $                 1,890.00 Inventory $          375.00 Supplies $      1,450.00 Fixed Assets Long Term Liabilities Business Equipment $    18,500.00 Lien Against Property $              15,400.00 New Equipment Loan $                 1,600.00 Total $    26,500.00 Total $              20,090.00

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