Question
Question # 4: Suppose PAPA's Bottle Manufacturing has planned to start their business from October 1, 2020 and wanted to include following assets in balance
Question # 4:
Suppose PAPA's Bottle Manufacturing has planned to start their business from October 1, 2020 and wanted to include following assets in balance sheet as at December 31, 2020:
Cash $ 550,000
Accounts Receivable 111,000
Inventory430,000
Office Equipment 47,000
Computer Equipment 25,000
Furniture & Fixture799,000
Machinery5,750,000
Instructions:
a.If you are the finance manager of "PAPA's Bottle Manufacturing", how many sources of funds you have to finance above assets? Explain
b.How many liability options, you have to support your funding requirements?
c.Prepare balance sheet with appropriate liability (both internal and external) to match with above assets.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started