Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the balance sheet below, would you make a $3,000 sale to this company and agree to let them pay you in 30 days? Why

Given the balance sheet below, would you make a $3,000 sale to this company and agree to let them pay you in 30 days? Why or why not? Use a ratio to support your answer.

Burns Co.
Balance Sheet
As of December 31, 2023
Assets Liabilities
Current Assets Current Liabilities
Cash 5,000 Accounts Payable 10,000
Accounts Receivable 15,000 Accrued Payroll 5,000
Inventory 50,000 Total Current Liabilities 15,000
Total Current Assets 70,000 Long-term Debt Payable 200,000
Total Long-term Liabilities 200,000
Fixed Assets Total Liabilities 215,000
Property 80,000 Stockholders' Equity
Plant & Equipment 165,000 Capital Stock 30,000
Accumulated Dep 30,000 Retained Earnings 40,000
Total Fixed Assets 215,000 Total Stockholders' Equity 70,000
Total Assets 285,000 Total Liabilities & S.E. 285,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Accounting

Authors: Frederick D. Choi, Gary K. Meek

7th Edition

978-0136111474, 0136111475

More Books

Students also viewed these Accounting questions