Question
Flounder Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PLEASE
Flounder Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PLEASE PROVIDE STEPS WITH EXPLANATION AND ANSWERS. THANK YOU!
FLOUNDER COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 | ||
Current assets | ||
Cash | $237,500 | |
Accounts receivable (net) | 347,500 | |
Inventory (lower-of-average-cost-or-market) | 408,500 | |
Equity investments (marketable)-at cost (fair value $127,500) | 147,500 | |
Property, plant, and equipment | ||
Buildings (net) | 577,500 | |
Equipment (net) | 167,500 | |
Land held for future use | 182,500 | |
Intangible assets | ||
Goodwill | 87,500 | |
Cash surrender value of life insurance | 97,500 | |
Prepaid expenses | 19,500 | |
Current liabilities | ||
Accounts payable | 142,500 | |
Notes payable (due next year) | 132,500 | |
Pension obligation | 89,500 | |
Rent payable | 56,500 | |
Premium on bonds payable | 60,500 | |
Long-term liabilities | ||
Bonds payable | 507,500 | |
Stockholders equity | ||
Common stock, $1.00 par, authorized 400,000 shares, issued 297,500 | 297,500 | |
Additional paid-in capital | 167,500 | |
Retained earnings | ? |
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $167,500 and for the equipment, $112,500. The allowance for doubtful accounts has a balance of $24,500. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)
FLOUNDER COMPANY Balance Sheet Assets $ $ : Liabilities and Stockholders' Equity $
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