Question
Balance Sheet Accounts and Amounts Cash & Equivalents $ 2,000 Enter this data in the Balance Sheet below Notes Payable/Short Term Debt $ 15,000
Balance Sheet Accounts and Amounts | ||
Cash & Equivalents | $ 2,000 | Enter this data in the Balance Sheet below |
Notes Payable/Short Term Debt | $ 15,000 | "" |
Accounts Receivables, Net | $ 40,000 | "" |
Accounts Payable | $ 65,000 | "" |
Inventory | $ 25,000 | "" |
Property/Plant/Equipment | $ 120,000 | "" |
Long Term Note-Debt | $ 80,000 | "" |
Shareholders Equity | $ 107,000 | will be calculated by student below |
Use the data above to complete the Balance Sheet below | ||
Asset subtotal | $ 2,000 | enter account and amount here |
Asset subtotal | $ 40,000 | enter account and amount here |
Asset subtotal | $ 25,000 | enter account and amount here |
Asset subtotal | $ 120,000 | enter account and amount here |
Total Assets | $ 187,000 | to be calculated by student |
Liability subtotal | $ 15,000 | enter account and amount here |
Liability subtotal | $ 65,000 | enter account and amount here |
Liability subtotal | $ 80,000 | enter account and amount here |
Total Liabilities | $ 160,000 | to be calculated by student |
Shareholders Equity | $ 27,000 | to be calculated by student |
Total Liabilities and Shareholders Equity | $ 187,000 | to be calculated by student |
Part 3. These answers are to be included in MOD 1 Competancy Assessment Word document to be labeled as 'your name MT 217M1'
Based on your assessment of the firm's Balance Sheet, you are to report to senior management on these key components:
a. What is the nature of this company's capital structure? Include percentages in your commentary. I.e., what percent of Total Liabilities (Debt) was used to finance Assets?
b. Compare this companys capitalization structure, stated as a percent, to a Standard Industrial Classification - Industry norm of 50%. What is the result?
c. To what extent is this company over or under leveraged ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started