BUS 500 Module 2 SLP

3/27/2016 SLP - BUS500 Financial Intelligence (MAR2016FT-1)

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Table of Contents Module 2: Balance Sheet SLP

SLP    

3/27/2016 SLP - BUS500 Financial Intelligence (MAR2016FT-1)

https://tlc.trident.edu/d2l/le/content/72137/viewContent/1636574/View 2/4

Module 2 ­ SLP

BALANCE SHEET

Below find a balance sheet for VWV Company. 

VWV Company  

Balance Sheet  

 December 31, 20XX  

               

Assets       Liabilities      

               

Current assets       Current liabilities      

               

  Cash  $72,000     Accounts payable  $12,000

 

  Accounts receivable  18,000    

Interest payable  12,000

 

  Interest receivable  1,000        

 

  Inventory  60,000          

Total current assets    $151,000   Total current liabilities    $24,000  

               

Long­term assets       Long­term liabilities      

3/27/2016 SLP - BUS500 Financial Intelligence (MAR2016FT-1)

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Equipment (net of depreciation)  $128,000    

Note payable  100,000

 

               

Total long­term assets    $128,000   Total long­term liabilities    $100,000  

               

        Equity      

          Common stock  10,000

 

          Paid­in capital  50,000

 

          Retained earnings  95,000

 

               

        Total equity    $155,000

             

Total assets   279,000   Total liabilities and equity    $279,000

                           

Required: 

Recreate the balance sheet in an Excel spreadsheet. Use cell formulae to add and subtract numbers. Add a column next to the balance sheet for answers to the questions in this case.

Is accounts payable larger or smaller than accounts receivable? What is the difference? What do the numbers indicate? Explain.

What does equipment net of depreciation mean?

3/27/2016 SLP - BUS500 Financial Intelligence (MAR2016FT-1)

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Are payables short­term or long­term?

Determine total liabilities.

Determine net short­term assets or liabilities.

Determine the total amount owed by VWV owed at the end of the year.

How do we know that the above is a corporate (not a sole proprietor) balance sheet?

Both content and presentation matter.

SLP Assignment Expectations

Submit the Excel spreadsheet. All information should be part of the spreadsheet. Written comments should be brief and refer to the balance sheet.

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