Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me please, it is easy but i messed up the bottom and have a new help 1 2 3 the second one from statement

help me please, it is easy but i messed up the bottom and have a new help
image text in transcribed
image text in transcribed
image text in transcribed1
image text in transcribed2
image text in transcribed3
the second one from statement 1 is the second one i just cropped it out on accident
The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations reparding the company's finandal condition and performance. Cute Camel Woodcraft Company is a hrypothetical company. Suppose it has the following balance sheet items reported at the end of its first vear of operation. For the second year, some parts are still incamplete. Use the information given to complete the balance sheet: Cute Camel Woodcraft CompanyBalance Sheet for Year Fndina Statement \# 1:Cute Camel's pool of relatlvely liquid assets, which are avallable to support the company's current and future sales, decreased from Year 1 to Year 2. This statement is because: Cute Came's total current liabilities balance increased from $1,350 million to $1,688 million between Year 1 and Year 2 . Cute Camel's total current asset balance actually increased from $9,000 million to $11,250 milition between Year 1 and Year 2 Cute Camel's total curtent fiabilities balance decreased by $2,250 million between Year 1 and Year 2 . This statement is because: Cute Camel's total current liabilities decreased by $312 million, while its long-term debt account decreased by $938 million Cute Camel's total notes payable increased by $78 mallion, while its common stock account increased by $2,438 million Cute Camel's total current liabilities increased by $312 million, while its use of long-term debt increased by $938 million customers purchased new items on credit rather than paying off existing credit accounts, This statement is because: The decrease from $1,688 million to $1,350 mitlion implies a net decrease in accounts recelvable and that more customers are paying off their receivables balances than are buying on credit The change from $3,960 mition to $4,950 million reflects a net accumulation of new credit sales The $338 increase in accounts receivable means either that Year 1 's existing credit customers are not paying off their owed balances and new or existing customers are making additional purchases on credit, or that Year 1 's credit customers have repaid their owed balances and Year 2 credit sales have exceeded Year 1 's credit sales Based on vour understanding of the different items reported in the balance sheet and the information they arovide, which statement regarding Cute. Camel Woodcraft Company's balance sheet is conststent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's assets should be listed from those carrying the largest balance to those with the smallest baiancei The company s assets should be listed in alphabedical ordec. The company's assets should be listed in the order in which they are to be coriverted into cash

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_2

Step: 3

blur-text-image_3

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

Fundamentals Of Corporate Finance

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

5th Edition

1119795435, 978-1119795438

More Books

Students also viewed these Finance questions

Question

How is outsourcing related to the law of one price?

Answered: 1 week ago