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Balance Sheet as of December 31, 2023: Assets Amount (USD) Liabilities and Equity Amount (USD) Cash and Cash Equivalents $50,000 Accounts Payable $15,000 Accounts Receivable

Balance Sheet as of December 31, 2023:

Assets

Amount (USD)

Liabilities and Equity

Amount (USD)

Cash and Cash Equivalents

$50,000

Accounts Payable

$15,000

Accounts Receivable

$30,000

Notes Payable

$10,000

Inventory

$40,000

Accrued Expenses

$5,000

Prepaid Expenses

$5,000

Total Current Liabilities

$30,000

Property, Plant, Equipment

$100,000

Long-Term Debt

$50,000

Investments

$20,000

Total Liabilities

$80,000

Other Assets

$10,000



Total Assets

$255,000



Equity

Amount (USD)

Common Stock

$60,000

Retained Earnings

$115,000

Total Equity

$175,000

Total Liabilities and Equity

$255,000

ยทDetermine Book Value per Share: Requirements:

  • With data from a balance sheet including total equity and the number of outstanding shares, compute the book value per share.
  • Interpret the book value per share and discuss its relevance to investors in assessing a company's intrinsic value.
  • Explain how changes in the book value per share can reflect changes in a company's financial performance and capital structure.

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