Balance Sheet The balance sheet provides a snapshot of the financial condition o

Question

Balance Sheet

The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are stil incomplete. Use the information given to complete the balance sheet. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current liabilities: Current assets: $7,380 Ants payable Cash and equivalents Accounts receivable Inventories 2,700 7,920 $18,000 469 3,375 9,900 $22,500 Accruals 2,500 $2,500 7,500 $10,000 Notes payable 2,656 otal current assets Total current liabilities Net fixed assets: Long-term debt 9,375 $12,500 Net plant and equipment $22,000 Total debt Common equity: 19,500 10,500 $30,000 $40,000 Common stock 24,375 Retained earnings Total common equit)y $37,500 Total assets $50,000 $40,000 Total liabilities and equity $50,000

Explanation / Answer

As per rules I am answering the first 4 sub parts of the question

1: Cash and cash equivalents = Total current assets- accounts receivables – Inventories

= 22500-3375-9900

= $9225

2: NetPlant and equipment = Total assets-total current assets

= 50000-22500

= 27500

3: Total current liabilities = Accounts payable+ Accruals + Notes

= 0+469+2656

= $3125

4: Retained earnings = Total common equity-common stock

= 37500-24375

= 13125

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