A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is as

Question:

A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is as follows:

Inventory ................$ 6,500

Common stock .............. 45,000

Cash .................. 16,550

Operating expenses ............. 1,350

Short-term notes payable .......... 600

Interest expense ............... 900

Depreciation expense ............. 500

Sales .................. 12,800

Accounts receivable ............ 9,600

Accounts payable ............. 4,800

Long-term debt ............... 55,000

Cost of goods sold ............. 5,750

Buildings and equipment .......... 122,000

Accumulated depreciation ........... 34,000

Taxes ................... 1,440

General and administrative expense ....... 850

Retained earnings .............. ?

a. How much is the firm’s net working capital?

b. Complete an income statement and a balance sheet for Belmond.

c. If you were asked to respond to complete parts a. and b. as part of a training exercise, what could you tell your boss about the company’s financial condition based on your answers?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...