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Green Mountain Coffee Roasters is a specialty coffee roaster and manufacturer of coffee makers. Using the following information, class notes, and the posted PowerPoint slides
Green Mountain Coffee Roasters is a specialty coffee roaster and manufacturer of coffee makers. Using the following information, class notes, and the posted PowerPoint slides as resources complete the following: Constructing a Balance Sheet Use the information below to construct and balance sheet and a common sized balance sheet for the corporation (note the information here is not necessarily provided in the order in which it should appear on a balance statement. Gross fixed assets: $110,000 Cash $100,000 Accounts payable: $43,000 Retained earnings: $25,000 Accumulated depreciation $42,000 Accounts receivable $75,000 Long-term bank loan $29,000; $15,000 of which will be due within the next 12 months. Mortgage (long-term) $50,000 Common Stock $105,000 Inventories $36,000 Notes payable (short-term) $27,000 What is the firm's net working capital? (the difference between current assets and current liabilities). Does the firm use more equity or debt (as a percent of total assets) to finance its business? A common-sized balance sheet is a balance sheet in which a firm's assets and sources of debt and equity are expressed as a percentage of its total assets. The debt ratio- is a firm's total liabilities divided by its total assets. It is a ratio that measures the extent to which a firm has been financed with debt
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