pre class balance sheet

Categories a current asset b long term assets c

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Unformatted text preview: k Times. •  The company purchases new delivery vehicles it will use in Brooklyn. It pays $50,000 of the total vehicle cost of $80,000 at signing. •  Ajorneys have no2fied the company that a New York City resident, seriously injured by one of the company’s delivery vehicles in lower Manhajan, has sued the company for $10M. Company lawyers have predicted that the court is likely to find the company liable in the lawsuit, but the company carries sufficient insurance to cover the losses. •  Refer to above. Now assume the company carries no insurance against such losses. •  A two- week strike by employees has closed down newspaper publishing opera2ons. As a result, the company could not deliver subscrip2ons totaling $2M. 11 Current Liabili2es •  Accounts payable (obliga2ons to suppliers) •  Salaries/wages payable •  Rent payable •  Interest payable •  Current maturi2es of long- term debt Ø། How much debt will have to be paid off in coming year 12 Long- Term Liabili2es •  Notes Payable Ø། Money borrowed from banks •  Bonds Payable Ø། Money borrowed from investors •  Compan...
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