Question

A scrambled list of accounts from the income statement and balance sheet of? Belmond, Inc. is found? here:

Inventory   $6,450
Common stock   45,010
Cash   16,550
Operating expenses   1,390
Short-term notes payable   560
Interest expense   920
Depreciation expense    530
Sales   12,750
Accounts receivable   9,560
Accounts payable   4,840
Long-term debt   55,160
Cost of goods sold   5,720
Buildings and equipment   122,050
Accumulated depreciation   34,400
Taxes   1,440
General and administrative expense   810
Retained earnings   ? ??

a.??How much is the? firm's net working? capital?

b.??Complete an income statement and a balance sheet for Belmond.

c. If you were asked to respond to parts (a?) and (b?) as part of a training? exercise, what could you tell your boss about the? company's financial condition based on your? answers?

Answer 1

Income statement					Trial balance
					explanantion		Debit	credit
sales		12750			inventory		6450
less cost of goods sold		5720			cash		16550
gross profit		7030			accounts receivables		9560
less operating expense		1390			building and equipment net off accumulated depreciation		122050
general and administrative expenses		810			sales			12750
less depreciation expense		530			cost of goods sold		5720
operating profit		4300			operating expenses		1390
less interest expense		920			general expenses		810
Profit before tax		3380			depreciation expense		530
less taxes		1440			interest expense		920
net income		1940			tax expense		1440
					short term notes payable			560
balance sheet					accounts payable			4840
Assets					long term debt			55160
current assets					common stock			45010
inventory		6450			accumulated depreciation			34400
cash		16550			retained earning	165420-152720		12700
accounts receivables		9560			total		165420	165420
total of current assets			32560
building and equipment net off accumulated depreciation	122050-34400		87650
total of assets			120210
Liabilities and shareholders equity
current liabilities
short term notes payable		560
accounts payable		4840
total of current liabilities			5400
long term debt			55160
total of liabilities			60560
shareholders equity			59650
common stock	45010
retained earnings	14640
total of shareholders equity			120210
statement of retained earning
beginning balance		12700
net income		1940
year end balance in retained earning		14640
Working capital	total of current assets-total of current liabilities	32560-5400	27160
company financial position is good as it is running in profits