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Demonstration Problem Account balances for Crystal Auto Wash at September 30, 2021, are shown as follows. The figure for retained earnings is not given,
Demonstration Problem Account balances for Crystal Auto Wash at September 30, 2021, are shown as follows. The figure for retained earnings is not given, but it can be determined when all the available information is assembled in the form of a balance sheet. Accounts Payable $16,800 Land $81,00 Accounts Receivable 960 Machinery & Equipment 78,00 Buildings 62,400 Notes Payable (due in 30 days) 34,800 Cash 11,040 Salaries Payable 3,600 Capital Stock 120,000 Supplies 48C Retained Earnings ? Instructions a. Prepare a balance sheet at September 30, 2021. b. Does this balance sheet indicate that the company is in a strong financial position? Explain briefly. c. How would an income statement and a statement of cash flows allow you to better respond to part b?
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