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Using the Balance Sheet found below, present the Balance Sheet of ABC Company Discuss the balance sheet items that the Board of Directors requested :
Using the Balance Sheet found below, present the Balance Sheet of ABC Company Discuss the balance sheet items that the Board of Directors requested : (1) Accounts Receivables changes per year and some processes that can be used for uncollectible accounts; (2) Discuss the trend in Payroll Liabilities as well as other Current or Long-Term liabilities; and (3)discuss types of investments that can be held by ABC Company.
20X2 | 20X1 | ||
Assets | |||
Current Assets | |||
Cash and cash equivalents | $ | 182,225 | 124,460 |
Trading Securities | 42,200 | 44,200 | |
Accounts receivable | 24,000 | 19,500 | |
Allowance for doubtful accounts | (2,100) | (3,350) | |
Accounts receivable, net | 21,900 | 16,150 | |
Inventories | 2,850 | 3,600 | |
Prepaid expenses and other receivables | 200 | 750 | |
Available-for-sale securities | 16,700 | 15,500 | |
Total current assets | $ | 287,975 | 220,810 |
Property, plant and equipment, net | 209,005 | 250,540 | |
Other assets | 300 | 300 | |
Total assets | $ | 497,280 | 471,650 |
Liabilities and Shareholders' Equity | |||
Current Liabilities | |||
Notes payable or current portion of long-term debt | $ | 24,000 | 24,000 |
Accounts payable | 14,030 | 17,050 | |
Total current liabilities | 38,030 | 41,050 | |
Long-term debt | 104,400 | 128,400 | |
Total liabilities | $ | 142,430 | 169,450 |
Shareholders' equity | |||
Common stock, $10 per value; 50,000 shares authorized; 20,000 shares issued and outstanding | 200,000 | 200,000 | |
Retained earnings | 154,850 | 102,200 | |
Total shareholders' equity | 354,850 | 302,200 | |
Total liabilities and shareholders' equity | $ | 497,280 | 471,650 |
Payroll Information | ||||||
ABC Company | ||||||
Number of Employees | 7 | |||||
Employee Name | Hours worked | Hourly rate | ||||
John Doe | 40 | $25.00 | ||||
Jane Jones | 40 | $25.00 | ||||
Jessie Smith | 40 | $18.00 | ||||
Erik Ackers | 25 | $15.00 | ||||
Nan Schmit | 30 | $17.00 | ||||
Larry Johnson | 35 | $18.00 | ||||
Christopher Hay | 40 | $18.00 | ||||
Assume Federal Income Tax will be withheld at a rate of 20% for everyone. | ||||||
FICA Social Security rate is 6.2% and Medicare is 1.45%. | ||||||
When you called your State, they told you that your State Unemployment tax rate would be 5.4%. | ||||||
Recall that the Federal Unemployment rate is the same for all businesses. | ||||||
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