1. Determine total assets and total liabilities for ABC Company.

2. Complete the accounting equation below using numbers instead of words.

Assets = Liabilities + Equity

3. Determine the total amount owed by ABC at the end of the year.

4. Does the company have more assets or liabilities? What is the significance of determining the difference between net assets and net liabilities?

5. If the company borrows an additional $10,000 which two balance sheet accounts will change? The new totals for total assets and total liabilities are

6. What is the "total wealth" of the company have according to the balance sheet?

ABC Company Balance Sheet December 31, 20XX Assets Liabilities Current assets Current liabilities Cash Accounts payable S 18,000 Accounts recievable Interest payable 8 000 Interest receivable 1 000 Inventory 30 000 Total current assets 144,000 Total current liabilities S 26,000 Long-term assets Long-term liabilities Equipment (net of depreciation) Note payable 90 000 Total long-term assets otal long-term liabilities S 90,000 quity Common stock 10,000 Paid-in capital 50,000 Retained earnings 96 000 otal equity 156 000 otal assets Total liabilities and equity 272 000