Question
Suppose PAPAs Bottle Manufacturing has planned to start their business from October 1, 2020 and wanted to include following assets in balance sheet as at
Suppose PAPAs 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 Inventory 430,000 Office Equipment 47,000 Computer Equipment 25,000 Furniture & Fixture 799,000 Machinery 5,750,000 Instructions: a. If you are the finance manager of PAPAs 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.
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