1.

Acme Company

Balance Sheet

As of January 5, 2020

(amounts in thousands) Cash 14,700 Accounts Payable 2,400 Accounts Receivable 4,800 Debt 3,700 Inventory 3,800 Other Liabilities 5,000 Property Plant & Equipment 15,800 Total Liabilities 11,100 Other Assets 900 Paid-In Capital 6,000 Retained Earnings 22,900 Total Equity 28,900 Total Assets 40,000 Total Liabilities & Equity 40,000

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Receive payment of $12,000 owed by a customer

2. Buy $15,000 worth of manufacturing supplies on credit

What is the final amount in Cash?

Please specify your answer in the same units as the balance sheet.

2.Acme Company

Balance Sheet

As of January 5, 2020

(amounts in thousands) Cash 14,100 Accounts Payable 1,900 Accounts Receivable 3,200 Debt 3,600 Inventory 4,900 Other Liabilities 2,000 Property Plant & Equipment 16,300 Total Liabilities 7,500 Other Assets 500 Paid-In Capital 7,200 Retained Earnings 24,300 Total Equity 31,500 Total Assets 39,000 Total Liabilities & Equity 39,000

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Issue $80,000 in stock

2. Borrow $65,000 from a bank

3. Receive payment of $12,000 owed by a customer

4. Pay $6,000 owed to a supplier

What is the final amount in Cash?

Please specify your answer in the same units as the balance sheet.

3.

Acme Company

Balance Sheet

As of January 5, 2020

(amounts in thousands) Cash 13,700 Accounts Payable 2,000 Accounts Receivable 3,200 Debt 3,600 Inventory 5,100 Other Liabilities 900 Property Plant & Equipment 15,400 Total Liabilities 6,500 Other Assets 800 Paid-In Capital 7,200 Retained Earnings 24,500 Total Equity 31,700 Total Assets 38,200 Total Liabilities & Equity 38,200

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Receive payment of $12,000 owed by a customer

2. Purchase equipment for $45,000 in cash

3. Issue $85,000 in stock

4. Borrow $67,000 from a bank

5. Buy $17,000 worth of manufacturing supplies on credit

6. Pay $7,000 owed to a supplier

7. Receive payment of $11,000 owed by a customer

What is the final amount in Accounts Payable?

Please specify your answer in the same units as the balance sheet.

4.

Acme Company

Balance Sheet

As of January 5, 2020

(amounts in thousands) Cash 13,700 Accounts Payable 2,000 Accounts Receivable 3,200 Debt 3,600 Inventory 5,100 Other Liabilities 900 Property Plant & Equipment 15,400 Total Liabilities 6,500 Other Assets 800 Paid-In Capital 7,200 Retained Earnings 24,500 Total Equity 31,700 Total Assets 38,200 Total Liabilities & Equity 38,200

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Sell product for $40,000 with historical cost of $32,000

What is the final amount in Retained Earnings?

Please specify your answer in the same units as the balance sheet.

5.

Acme Company

Balance Sheet

As of January 5, 2020

(amounts in thousands) Cash 12,500 Accounts Payable 2,400 Accounts Receivable 3,600 Debt 3,700 Inventory 5,200 Other Liabilities 3,000 Property Plant & Equipment 16,700 Total Liabilities 9,100 Other Assets 600 Paid-In Capital 5,600 Retained Earnings 23,900 Total Equity 29,500 Total Assets 38,600 Total Liabilities & Equity 38,600

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Sell product for $35,000 with historical cost of $28,000

2. Sell product for $20,000 with historical cost of $16,000

3. Sell product for $25,000 with historical cost of $20,000

What is the final amount in Retained Earnings?

Please specify your answer in the same units as the balance sheet.

6.

The balance sheet value of a firm's inventory is $50,000. Suppose that the firm purchases supplies at a cost of $4,000 and adds them to inventory. A day later, the market value of the recently purchased supplies changes to $2,500.

Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory?

Note: Students with prior accounting experience should not apply the monthly "lower of cost or market" adjustment. This is a day-to-day fluctuation.