ENT 401 Chapter 8 Homework- Two Year Balance Sheet Creation Understanding Financial Statement Connections to the Balance Sheet Directions: Given the following information for Solar Solutions Corp., prepare a balance sheet for 2015 and 2016 in the template provided and submit your answers on Blackboard by Saturday at 11:59 pm. Note: You will be graded on appropriate account titles and locations within the balance sheet. All green shaded areas should be completed. Also, don't forget the balance sheet should balance!!! Note: You will also be graded on the correctness of the 2016 amounts since some of the accounts below are from the income statement or cash flow-you will need to calculate the changes to the balance sheet in the 2016 figures. Explain fully in the following question these connections and the formulas you used Problem Information: The following 13 items should be accurately reflected in your work. 1. Accounts receivable is $6,076 in 2015 and $5,624 in 2016. 2. The acquisition cost of plant, property and equipment is $20,580 in 2015 and $26,404 in 2016. 3. Accumulated depreciation was $4,949 in 2015. 4. Cash is $3,185 in 2015 and $3,128 in 2016. 5. Prepaid expenses are $804 in 2016. 6. Net profits were $920 in 2016. 7. Owners' investment was $12,226 in both 2015 and 2016. 8. Retained earnings were $3,356 in 2015. 9. Inventory was $14,210 in 2015 and $16,503 in 2016. 10. Accounts payable were $4,410 in 2015 and $5,912 in 2016. 11. Long-term debt was $18,539 in 2015 and $21,525 in 2016. 12. Depreciation was $2,714 in 2016. 13. Current portion of long-term debt was $571 in 2015 and $861 in 2016.Solar Solutions Corp. BALANCE SHEET 2015 2016 Assets Current Assets Total Current Assets Long-Term Assets 44 44 44 44 Total Long-Term Assets Total Assets Liabilities and Owner's Equity Current Liabilities Total Current Liabilities $ Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity 1. Name the two accounts where the amounts from the Profit and Loss Statement of the current period is needed to create the Balance Sheet for the current period. Explain the formula that must be used to find the correct answer. a