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Near the end of 2013, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2013. DIMSDALE
| Near the end of 2013, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2013. |
| DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2013 | |||||
| Assets | |||||
| Cash | $ | 35,500 | |||
| Accounts receivable | 520,000 | ||||
| Inventory | 135,000 | ||||
| Total current assets | 690,500 | ||||
| Equipment | $ | 539,000 | |||
| Less accumulated depreciation | 67,375 | ||||
| Equipment, net | 471,625 | ||||
| Total assets | $ | 1,162,125 | |||
| Liabilities and Equity | |||||
| Accounts payable | $ | 350,000 | |||
| Bank loan payable | 16,000 | ||||
| Taxes payable (due 3/15/2014) | 91,000 | ||||
| Total liabilities | $ | 457,000 | |||
| Common stock | 471,000 | ||||
| Retained earnings | 234,125 | ||||
| Total stockholders | |||||
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