Cash Accounts receivable Inventories Total current assets Yr 2 Yr 1 Yr 2 Yr 1 $ 377 $ 141 Accounts payable $ 136 $ 75 710 633 Notes payable 240 140 1,150 826 Accrued liabilities 260 240 $2,237 $1,600 Total current liabilities $ 636 $ 455 Long-term debt 1,610 1,150 Total liabilities $2,246 $1,605 Preferred stock 90 90 Common stock 300 300 Retained earnings 1,751 1,430 $2,150 $1,825 Total common equity $2,051 $1,730 $4,387 $3,425 Total Habilities and equity $4,387 $3,425 Net fixed assets Total assets The focus in your finance course will not be on meticulous construction and classification of accounts and transactions, Rather, it will assume that the accountants who constructed the statements have done a good job, and you will be instructed how to interpret the statements. Does the balance sheet shown above agree with or violate the fundamental accounting equation? No, it violates the fundamental accounting equation Yes, it agrees with the fundamental accounting equation