Question
Venus Apparel, a student-run clothing company based out of Queens University, has the following financial information as of December 31, 2021: Cash ending balance is
Venus Apparel, a student-run clothing company based out of Queens University, has the following financial information as of December 31, 2021: Cash ending balance is $19,530 Buildings & Equipment ending balance is $105,846 Accounts Receivables ending balance is $5,722 Common Shares ending balance is $92,760 Inventory ending balance is $40,000 Land ending balance is $278,193 Accounts Payable ending balance is $12,091 Retained Earnings ending balance is $114,297 Buildings & Equipment Accumulated Depreciation ending balance is $47,000 Wages Payable ending balance is $63,875 Short-Term Debt ending balance is $10,000 Taxes Payable ending balance is $23,185 Long-Term Mortgage ending balance is $48,500 10-Year Bond ending balance is $25,500 Interest Payable ending balance is $12,083 a) Prepare a Balance Sheet for the company as of December 31, 2021. Ensure you categorize your accounts into Current and Non-Current Assets/Liabilities, and Shareholders Equity.
3 b) Explain two different ways that Venus apparel has funded operations. How are you able to tell based on the values and information present in your balance sheet? c) Calculate the Debt-to-Equity Ratio and Current Ratio for the company. Explain what these ratios are and what they are used for. d) Comment on the companys financial position, based on the ratios you calculated. e) Based on the ratios calculated, would you feel that giving Venus Apparel a short-term loan would be a safe investment? Why or why not?
thanks in advance! :)
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