1. Prepare a balance sheet for the Nadia Coffee Shop, owned by Nadia Jamil, dated January 31, 20. Assets include building $164 000, equipment $28 500, furniture $34 600, Vehicles rent 3000 and cost of vehicles 12,000, inventory $16 900, and cash $12 500. Liabilities include mortgage $60 000, Central Wholesales creditors $94,500, bank loan $10 000 and notes payable $41,400. Note that in this question, both the assets and the liabilities must be rearranged. The liabilities are placed in the order of the need to be paid accounts payable first and mortgage last. Monthly sales of the coffee shop is 76,000 with net profit before tax 80,000. Income tax rate in 20%.
2. Describe the balance sheet and what information it contains. Why is this statement important to the company, creditors, and investors?