BUS 230A- Chapter 2 Homework

BUS 230A Chapter 2 - Current liabilities Accounts payable…-4700 Notes payable………10000 Common stock…….20000 Dividends…………-5000

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Konrad Thieme BUS 230A September 10, 2006 Chapter 2 Homework: SE2-17, E2-10A, E2-16A, E2-13B, P2-6A, P2-7B SE2-17 a. 500 b. 128,500 c. 2,600 d. 31,000 E2-10A a. A = L + E 20,000= L+20,000 b. A = L+ E 4,000= 4,000+ E c. A = L + E -2,000+2,000= L+E d. A = L + E 3,000 = L = E e. A = L + E 4,000=L+4,000 f. A = L + E -1,000 =L + (-1,000) E2-16A Current ratio = current assets/current liabilities 2006: 256,485/104,196=2.461562824 2005: 265,960/101,929=2.609267235 The companies liquidity decreased from 2005-2006 E2-13B a. \$7,325=L+7,325 b. -\$1,875=L+ (-1,875) c. \$12,750=12,750+E d. \$3,250=3,250+E e. \$750=750+E

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P2-6A 76500 A = L + E 76500 cash equip Parts/ suply Accts payable Nts pay Com stck rev expen Divid 1 20000 20000 2 - 17000 17000 3 10000 10000 4 -1200 1200 5 -5000 -5000 6 -8000 8000 7 -6000 -6000 8 1300 1300 totals -7200 +17000 +10500 =-4700 +10000 +20000 -5000 \$20,300 \$20,300 b. Assets Current assets Cash………………. .-7200 Non current assets Equipment…………17000 Parts/supplies………10500 Total assets…………20300 Liabilities and Shareholders equity
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Unformatted text preview: Current liabilities Accounts payable…. .-4700 Notes payable………10000 Common stock……. ..20000 Dividends…………. ..-5000 Total liabilities/shareholders equity 20300 c. cash from operating activities cash paid for operating expenses……….27500 total cash for operating activities……………….27500 cash for investing activities cash for equipment……………………. .18300 cash from investing activities cash proceeds from loans………………. .10000 cash contributions from owners…………………20000 net increase in cash………………………………20300 beginning cash balance…………………………. .76500 ending cash balance……………………………. ..20300 P2-7B a. 1) 12000=L+12000 2) 3100=L+3100 3) -985=L+-985 4)-650=L+-650 5)-500=L+-500 6) 8000=8000+E b....
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This note was uploaded on 04/07/2008 for the course BUS 230A taught by Professor S during the Fall '08 term at Sonoma.

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BUS 230A Chapter 2 - Current liabilities Accounts payable…-4700 Notes payable………10000 Common stock…….20000 Dividends…………-5000

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