Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the current balance sheet, how much equity should he give up for an investment in new product? NATURE BROS. LTD. Balance Sheet As

Based on the current balance sheet, how much equity should he give up for an investment in new product?

NATURE BROS. LTD. Balance Sheet As of September 30, 2003
Unaudited
Current assets
110 CashAmerican Bank $527.11
112 CashBank of Okla-Pryor 31.86
115 Cash on hand 24.95
120 Accounts receivable 21,512.75
125 Employee advances 327.37
140 InventoryShipping 940.43
141 InventoryRaw materials 1,082.29
142 InventoryWork-in-progress 803.7
143 InventoryPackaging 4,548.41
144 InventoryPromotional 2,114.95
Total current assets $31,913.82
Fixed assets
160 Leasehold improvements $2,402.25
165 Fixtures and furniture 1,222.46
167 Equipment 18,768.21
169 Office equipment 0
170 1986 Lincoln Town Car 15,000.00
180 Less: Accumulated depreciation -7,800.01
181 Less: Amortization (502.50)
Total fixed assets $29,090.41
Other assets
193 Organizational cost $4,083.36
194 Prepaid interest 2,849.69
195 Utility deposits .00
Total fixed and other assets $36,023.46
Total assets $67,937.28
Current liabilities
205 Accounts payable $15,239.41
210 Note payable-premium finances 88.26
220 Federal tax withheld 150
225 FICA tax withheld 937.92
230 State tax withheld 266.49
231 State and federal employment taxes 230.92
Total current liabilities $16,913.00
Long-term liabilities
245 Note payableAll fill $2,734.86
246 Note payableAmerican Bank 23,740.00
247 Note payableSikeston Leasing 15,126.66
Total long-term liabilities $41,601.52
Total liabilities $58,514.52
Capital account
290 Original capital stock $1,000.00
291 Additional paid-in capital 41,580.00
292 Treasury stock -70
295 Retained earnings -3,819.71
298 Net profit or loss -29,267.53
Total owners equity account $9,422.76
Total liabilities and equity $67,937.28

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Continuity Management Audit A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655845860, 978-0655845867

More Books

Students also viewed these Accounting questions

Question

Which form of proof do you find least persuasive? Why?

Answered: 1 week ago