Question

Use the starting balance sheet, income statement, and the list of changes to answer the question.

Valley Technology Balance Sheet As of December 31, 2019 (amounts in thousands)
Cash	22,000	Liabilities	36,000
Other Assets	28,000	Equity	14,000
Total Assets	50,000	Total Liabilities & Equity	50,000

Valley Technology Income Statement January 1 to March 31, 2020 (amounts in thousands)
Revenue	7,200
Expenses	3,600
Net Income	3,600

Between January 1 and March 31, 2020:

1. Cash decreases by $200,000
2. Liabilities decrease by $100,000
3. Paid-In Capital does not change
4. Dividends paid of $400,000

What is the value for Other Assets on March 31, 2020?

Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars.

Please specify your answer in the same units as the financial statements (i.e., enter the number from your updated balance sheet).

Answer 1

Cash balance on Dec 31, 2019 = $22,000 thousands

Decrease in cash = $200 thousands

Cash balance on March 31, 2020 = Cash balance on Dec 31, 2019 - Decrease in cash

= 22,000 - 200

= $21,800 thousands

Liabilities on Dec 31, 2019 = $36,000 thousands

Decrease in liabilities = $100 thousands

Liabilities on March 31, 2020 = Liabilities on Dec 31, 2019 - Decrease in liabilities

= 36,000 - 100

= $35,900 thousands

Equity on Dec 31, 2019 = $14,000 thousands

Net income = $3,600 thousands

Dividends = $400 thousands

Equity on March 31, 2020 = Equity on Dec 31, 2019 + Net income - Dividends

= 14,000 + 3,600 - 400

= $17,200 thousands

Cash balance on March 31, 2020 + Other assets = Liabilities on March 31, 2020 + Equity on March 31, 2020

21,800 + Other assets = 35,900 + 17,200

Other assets = 35,900 + 17,200 - 21,800

= $31,300 Thousands

Other assets on March 31, 2020 = $31,300 thousands

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