currently has two outstanding loans: one for
$54,000 due December 31,2020 , and another one for which the next payment is due in four years.\
$98,000, net.\ a. Complete the balance sheet and income statement, using any of the above information that is necessary.\ business.\ Salvador Industries\ Balance Sheet as of June 30, 2020\ Assets\ Current assets\ Cash\ Accounts receivable\ Inventories\ Prepaid services\ Total Current Assets\
$342,000\
2,810,000\
2,008,000\ 162,000\ Long-torm assets\ Building\ Less accumulated depreciation\ Equipment\ Less accumulated depreciation\
$208,000\ 495,000\ 545,000
Salvador Industries bought land and built its plant 20 years ago. The depreciation on the building is calculated using the straight-line method, whth a life of 30 years and a salvege value of $52.000. Land is not depreciated. The depreciation for the equipment, all of which was purchased at the same time the plant was constructed, is calculated using decining balance at 15 percent. Salvador currently has two outstanding loans: one for $54,000 due December 31, 2020, and another one for which the next payment is due in four years. During April 2020, there was a flood in the building because a noarby river overflowed its banks after unusually hasy rains. Pumping out the water and cleaning up the basemem and the first tloor of the building took a week. Manufacturing was suspended during this period and some invemtory was damaged. Due to inadequate insurance, ithis unusual and unexpected event cost the company $98,000, net. a. Complete the belance sheet and income statement, using any of the above information that is necessary. b. Show how information from financial ratios can indicate whether Salvador Industries can manage an unusual and unexpocted event, such as the fiocd, without threatering its exisicnce as a vable business. First, complete the balance sheet. Start by completing the assets portion and then the liablities and owners' equity portions. (Round smoums to the nearest whole dollar.) Salvador Industries bought land and built its plant 20 years ago. The depreciation on the building is calculated using the straight-line method, whth a life of 30 years and a salvege value of $52.000. Land is not depreciated. The depreciation for the equipment, all of which was purchased at the same time the plant was constructed, is calculated using decining balance at 15 percent. Salvador currently has two outstanding loans: one for $54,000 due December 31, 2020, and another one for which the next payment is due in four years. During April 2020, there was a flood in the building because a noarby river overflowed its banks after unusually hasy rains. Pumping out the water and cleaning up the basemem and the first tloor of the building took a week. Manufacturing was suspended during this period and some invemtory was damaged. Due to inadequate insurance, ithis unusual and unexpected event cost the company $98,000, net. a. Complete the belance sheet and income statement, using any of the above information that is necessary. b. Show how information from financial ratios can indicate whether Salvador Industries can manage an unusual and unexpocted event, such as the fiocd, without threatering its exisicnce as a vable business. First, complete the balance sheet. Start by completing the assets portion and then the liablities and owners' equity portions. (Round smoums to the nearest whole dollar.)
