1) What problems in the Balance Sheet both on the Asset side and Liabilities side do you see for Model Company 2) If you decide that there are Balance Sheet problems, then how would you fix them, so that the company's cash flow is improved 3) Based on your responses to the first 2 questions, would you invest in this company Why or why not 4) What lessons from Model Company did you learn that you'll apply to your own small business Balance Sheet for the Model Company Text Figure 131 TM 13 4A THE MODEL COMPANY, INC Balance Sheat December 31, 20 Assats Current assels $ 7,054 60,484 80,042 1,046 Cash Accounls receivable Inventory Prepaid expenses Total current assels Fixed assels Equipment Building Gross fixed assels Less accumulated depreciation $148,626 $100,500 40,950 141,450 16,900 Net fixed assels Talal assets 124,550 $273 176 Hifeompaniss Ine Balance Sheet for the Model Company (continued) Text Figure 31 TM 13 4B Liabilities and Owners' Equity Current liabilities Accounls payable Accrued payable Tolal current liabilkties longterm liabilities Mortgage payable 51,348 3,060 $ 54,408 20,708 Tolal liabilities $ 75,116 Owners' equity Capilal stock Relained earnings 160,000 38,060 Total equity 198,060 Total liabilities and owners' equily $273,176 h McGauHillkeonpamesne 2000 Balance Sheet for the Model Company Text Figure 131 TM 13 4A THE MODEL COMPANY, INC Balance Sheat December 31, 20 Assats Current assels $ 7,054 60,484 80,042 1,046 Cash Accounls receivable Inventory Prepaid expenses Total current assels Fixed assels Equipment Building Gross fixed assels Less accumulated depreciation $148,626 $100,500 40,950 141,450 16,900 Net fixed assels Talal assets 124,550 $273 176 Hifeompaniss Ine Balance Sheet for the Model Company (continued) Text Figure 31 TM 13 4B Liabilities and Owners' Equity Current liabilities Accounls payable Accrued payable Tolal current liabilkties longterm liabilities Mortgage payable 51,348 3,060 $ 54,408 20,708 Tolal liabilities $ 75,116 Owners' equity Capilal stock Relained earnings 160,000 38,060 Total equity 198,060 Total liabilities and owners' equily $273,176 h McGauHillkeonpamesne 2000

Question

1) What problems in the Balance Sheet   both on the Asset side and Liabilities side   do you see for Model Company  2) If you decide that there are Balance Sheet problems, then how would you  fix  them, so that the company's cash flow is improved  3) Based on your responses to the first 2 questions, would you invest in this company  Why or why not  4) What lessons from Model Company did you learn that you'll apply to your own small business  Balance Sheet for the Model Company Text Figure 131 TM 13 4A THE MODEL COMPANY, INC  Balance Sheat December 31, 20  Assats Current assels $ 7,054 60,484 80,042 1,046 Cash Accounls receivable Inventory Prepaid expenses Total current assels Fixed assels Equipment Building Gross fixed assels   Less  accumulated depreciation  $148,626 $100,500 40,950 141,450 16,900 Net fixed assels Talal assets 124,550 $273 176 Hifeompaniss Ine  Balance Sheet for the Model Company (continued) Text Figure 31 TM 13 4B Liabilities and Owners' Equity Current liabilities  Accounls payable Accrued payable Tolal current liabilkties longterm liabilities Mortgage payable 51,348 3,060 $ 54,408 20,708 Tolal liabilities $ 75,116 Owners' equity Capilal stock Relained earnings 160,000  38,060 Total equity 198,060 Total liabilities and owners' equily $273,176 h McGauHillkeonpamesne 2000 Balance Sheet for the Model Company Text Figure 131 TM 13 4A THE MODEL COMPANY, INC  Balance Sheat December 31, 20  Assats Current assels $ 7,054 60,484 80,042 1,046 Cash Accounls receivable Inventory Prepaid expenses Total current assels Fixed assels Equipment Building Gross fixed assels   Less  accumulated depreciation  $148,626 $100,500 40,950 141,450 16,900 Net fixed assels Talal assets 124,550 $273 176 Hifeompaniss Ine  Balance Sheet for the Model Company (continued) Text Figure 31 TM 13 4B Liabilities and Owners' Equity Current liabilities  Accounls payable Accrued payable Tolal current liabilkties longterm liabilities Mortgage payable 51,348 3,060 $ 54,408 20,708 Tolal liabilities $ 75,116 Owners' equity Capilal stock Relained earnings 160,000  38,060 Total equity 198,060 Total liabilities and owners' equily $273,176 h McGauHillkeonpamesne 2000

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1) What problems in the Balance Sheet - both on the Asset side and Liabilities side - do you see for Model Company? 2) If

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