Question

1. Prepare a balance sheet

Place the appropriate account in the balance sheet and the appropriate amount.

If the item does not belong on a balance sheet do not put the item on the balance sheet.

Cash = $270,000; Notes payable = $300,000; Receivables Turnover = 20; Sales = $5,000,000;    Total current assets = $750,000; Net working capital = $350,000; Total assets = $10,000,000; Retained earnings = $2,500,000; Common Stock = ?; Fixed Assets = ?; Accounts Payable = ? Inventory = ?

ABC Company

Balance Sheet

December 31, 2018

Assets			Liabilities
Current Assets			Current Liabilities
1 cash			1
2 inventory			2
3			Total Current Liabilities
Total Current Assets	2,500,000		Long term Debt	2,000,000
Long term assets:			Total Liabilities
1			Equity
			1
			2
Total Assets	10,000,000		Total Liabilities and Equity

And explanation please

Answer 1

Receivables Turnover = Sales / Accounts Receivable
20 = $5,000,000 / Accounts Receivable
Accounts Receivable = $250,000

Current Assets = Cash + Accounts Receivable + Inventory
$750,000 = $270,000 + $250,000 + Inventory
Inventory = $230,000

Total Assets = Total Current Assets + Fixed Assets
$10,000,000 = $750,000 + Fixed Assets
Fixed Assets = $9,250,000

Net Working Capital = Current Assets - Current Liabilities
$350,000 = $750,000 - Current Liabilities
Current Liabilities = $400,000

Current Liabilities = Accounts Payable + Notes Payable
$400,000 = Accounts Payable + $300,000
Accounts Payable = $100,000

Total Liabilities and Equity = Total Assets
Total Liabilities and Equity = $10,000,000

Total Liabilities and Equity = Total Liabilities + Common Stock + Retained Earnings
$10,000,000 = $2,400,000 + Common Stock + $2,500,000
Common Stock = $5,100,000