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Unformatted text preview: Homework Assignment # 4; Michael Novack 260265638 E 5-2) m= monetary fi= financial instruments Current Assets J (m), M (m), Q (fi), R (m) Long-term Investment P (fi) Property, plant and equipment E (m), O (fi) Intangible Assets B (m), V (fi) Other Assets Current Liabilities C(m), D(fi), G(m), I(m), L(fi), S(fi), T(fi) Non-current Liabilities H (fi), N (fi) Capital Shares A (fi) Contributed Surplus Retained Earnings U (m) Accumulated other comprehensive income F (fi) E 5-5) A. Nguyen Corporation Balance Sheet As of July 31st, 2008 Assets Current Assets Cash $60,000 Account Receivable $44,000 Less: Allowance for Doubtful Accounts 3,500 40,500 Inventory 54,700 Total Current Asset $155,200 Bond Sinking 15,000 Equipment $112,000 Less: Amortization 28,000 $ 84,000 Total Property, plant and Equipment $ 99,000 Intangible Assets Patents $ 45,000 Total $ 299,200 1 Assets Liabilities and Shareholde r's Equity Liabilities Notes and Accounts Payable 44,000 Tax Payable 6,000 Long-Term Liabilities 99,000 Total Liabilities $ 149,000 Shareholder' s Equity $ 150,200 Total Liabilities and Shareholder' s Equity $ 299,200 B. The 8,000 increases the working capital, as there is more cash to play with, yet the current ratio remains the same because the total asset column does not change, as it is being shifted from a different asset account (account receivable ) to just cash. Therefore current ratio does not change. The likely cause of the credit balance belongs to someone who has paid their bill from Nguyen corp. Therefore they are decreasing there account receivable and putting it into cash. E5-10) Kwanzu Corporation Balance Sheet As of December 31, 2007 Assets Current Assets: Cash $ 205,000 Accounts Receivable 515,000 Less: Allowance for Doubtful Accounts 25,000 $ 490,000 Short-Term Investment $ 452,000 Inventory 687,000 Total Current Assets 1,834,000 Long Term Investments-available for sale $ 277,000 2 Land...
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This note was uploaded on 04/10/2009 for the course MANG MGCR 352 taught by Professor Zlou during the Spring '09 term at McGill.
- Spring '09