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Below find a balance sheet for VWV Company.
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
Long-term assets
Long-term liabilities
Equipment (net of depreciation)
$128,000
Note payable
100,000
Total long-term assets
$128,000
Total long-term liabilities
$100,000
Equity
Common stock
10,000
Paid-in 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 listed below.
Questions:
- 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?
- Are payables short-term or long-term?
- Determine total liabilities.
- Determine net short-term assets or liabilities.
- Determine the total amount owed by VWV at the end of the year.
- How do we know that the above is a corporate (not a sole proprietor) balance sheet?
Submit the Excel spreadsheet. All information should be part of the spreadsheet. Written comments should be brief and refer to the balance sheet. Both content and presentation matter.
