Question
Consider the following balance sheet: Cash$ 70,000Accounts payable$ 30,000Accounts receivable30,000Long-term debt20,000Inventories50,000Common stock200,000Net fixed assets350,000Retained earnings250,000 Total assets$500,000Total claims$500,000 Assume that the business uses $10,000 of
Consider the following balance sheet:
Cash$ 70,000Accounts payable$ 30,000Accounts receivable30,000Long-term debt20,000Inventories50,000Common stock200,000Net fixed assets350,000Retained earnings250,000 Total assets$500,000Total claims$500,000Assume that the business uses $10,000 of its cash to pay for supplies that were ordered on credit terms and have already been received and booked (recorded on the balance sheet). Which of the below statements reflects the resulting balance sheet change?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
