In addition to the information provided in P2-7 you also learn the following about Nathans assets: a.

Question:

In addition to the information provided in P2-7 you also learn the following about Nathan’s assets:
a. Nathan thinks the car could be sold for about $2,200.
b. A friend of Nathan’s recently offered him $1,000 for the computer.
c. Nathan is unlikely to receive more than $1,000 for his personal property.

Required:
a. Use the additional information along with the information provided in P2-7 to prepare a revised personal for Nathan. Explain the choices you made in preparing the statement.
b. Compare your with the one you prepared in P2-7. Which do you think would be more useful to the art school in assessing Nathan’s need for financial assistance? Explain.
c. What problems arise when using market values of Nathan’s assets instead of the cost? What are some of the benefits of using the cost of the assets? Is the prepared using market value information more or less useful than the prepared using the cost information? 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...