Critical Thinking Problem 13.2 (Algo) Classified Balance Sheet LO 13-3 Brandon Marchand is the owner of Divine Jewels, a store specializing in gold, platinum, and special stones. During the past year, in response to increased demand, Brandon doubled his selling space by expanding into the vacant building space next door to his store. This expansion has been expensive because of the need to increase inventory and to purchase new store fixtures and equipment including carpeting and state-of-the-art built-in fixtures. Brandon notes that the company's cash position has decreased and he is worried about future demands on cash to finance the growth. Brandon presents you with a statement showing the assets, llabilities, and his equity for year-end 20x0 and 20x1, and asks your opinion on the company's ability to pay for the recent expansion. He did not have income and expense data available at the time. He commented that he had not made any new investment in the business in the past two years and was not financially able to do so presently. The information presented is shown below: December 31, 20X0 December 31, 20x1 $155,000 47,500 110,000 6,500 182,500 $ 40,500 94,000 239,000 9,500 405,000 25 5501,500 $788,000 Asseto Cash Accounts receivable Inventory Prepaid expenses Store fixtures and equipment Total Assets Liabilities and Owner's Equity Liabilities Notes payable (due in 4 years) Accounts payable salaries payable Total Liabilities owner's Iquity Brandon Marchand, Capital Total Liabilities and Owner's Equity $ 95,000 137,000 18,500 $260,000 181,000 22,000 5250,500 5463,000 251,000 5501,500 325,000 $700,000 DIVINE JEWELS Balance Sheet December 31, 20X0 December 31, 20X1 Assets Current Assets Total Current Assets Plant and Equipment Total Assets Liability and Owner's Equity Current liabilities Total Current Liabilities Long-term liabilities Total Liabilities Owner's Equity Total Liabilities and Owner's Equity BE DA 1 Nav