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The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and
The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance Blue Hamster Manufacturing Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Blue Hamster Manufacturing Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets Liabilities and equity Current liabilities: $0 188 1,062 $0 Cash and equivalents Accounts receivable Inventories $2,952 Accounts payable 1,350 3,960 $9,000 Accruals 1,080 3,168 $7,200 1,000 $1,000 3,000 $4,000 Notes payable Total current assets Total current liabilities Net fixed assets Long-term debt 3,750 $5,000 Net plant and equipment $8,800 Total debt Common equity: 7,800 4,200 $12,000 $16,000 Common stock 9,750 Retained earnings $15,000 $20,000 Total common equity Total assets $20,000 $16,000 abilities and equity The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance Blue Hamster Manufacturing Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Blue Hamster Manufacturing Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets Liabilities and equity Current liabilities: $0 188 1,062 $0 Cash and equivalents Accounts receivable Inventories $2,952 Accounts payable 1,350 3,960 $9,000 Accruals 1,080 3,168 $7,200 1,000 $1,000 3,000 $4,000 Notes payable Total current assets Total current liabilities Net fixed assets Long-term debt 3,750 $5,000 Net plant and equipment $8,800 Total debt Common equity: 7,800 4,200 $12,000 $16,000 Common stock 9,750 Retained earnings $15,000 $20,000 Total common equity Total assets $20,000 $16,000 abilities and equity
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