Question
In Accounts Payable, it is stated as Remaining amount. Where can I find the remaining amount of $129,032.25? I am struggling on this one. My
In Accounts Payable, it is stated as Remaining amount. Where can I find the remaining amount of $129,032.25? I am struggling on this one. My 2017 Revised balance sheet accounts payable is $23,437.11. So, how did you end up with accounts payable of $129,032.25?
The Problem : The company is planning to open another location in 2018. Prepare pro forma financials for 2018 for the new location using the following information:
1. Cost of leasing commercial space: $1,500 per month.
2. Cost of new equipment: $15,000, purchased with a long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full years depreciation for the first year. Equipment purchase was financed with a long-term note.
3. Cost of hiring and training new employees: three at $25,000 each for the first year.
4. Cash: $7,000. Accounts receivable amount to 4.0 turns (accounts receivable turnover will be 4.0); inventory amount to show 3.0 turns (inventory turnover will be 3.0). No stock will be issued. Retained earnings are to equal net income. Additional financing of $5,000 will be long term. Add remaining amount needed to balance into accounts payable.
5. Except as noted above, assets, current liabilities, sales, costs, and expenses are expected to be 80% of the existing store (from preliminary statements) except no stock. Retained Earnings = Net Income
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