Balance Sheet as of December 31, 20X3 cash $1,000,000 Accounts payable $3,000,000 Accounts receivable 1,500,000 Notes payable 3,000,000 inventories 6,000,000 Long-term debt 2,000,000 Net fixed assets 3,000,000 Stockholders' equity 3,500,00 Total Assets $11,500,000 Total liabilities and equity $11,500,000 All assets, except “cash", are expected to vary proportionately with sales. Of total liabilities and equity, only “accounts payable" is expected to vary proportionately with sales.
Balance Sheet as of December 31, 20X3 cash $1,000,000 Accounts payable $3,000,000 Accounts receivable 1,500,000 Notes payable 3,000,000 inventories 6,000,000 Long-term debt 2,000,000 Net fixed assets 3,000,000 Stockholders' equity 3,500,00 Total Assets $11,500,000 Total liabilities and equity $11,500,000 All assets, except “cash", are expected to vary proportionately with sales. Of total liabilities and equity, only “accounts payable" is expected to vary proportionately with sales.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...
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1. Use the percentage of sales
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