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In: Accounting

Account Balance 12/31/2013   Balance 12/31/2014 Accumulated depreciation     $2,021 $2,678 Accounts payable $1,806 $2,053 Accounts receivable...

Account Balance 12/31/2013   Balance 12/31/2014
Accumulated depreciation     $2,021 $2,678
Accounts payable $1,806 $2,053
Accounts receivable $2,490 $2,682
Cash $1,303 $1,145
Common stock $4,981 $4,981
Inventory $5,796 $6,022
Long-term debt $7,803 $8,195
Plant, property, and equipt. $8,393 $9,205
Retained earnings $1,371 $1,147​

a.  construct a balance sheet for 2013 and 2014.

b.  list all the working capital accounts.

c.  find the net working capital for the years ending 2013 and 2014.

d.  calculate the change in net working capital for the year 2014.

Solutions

Expert Solution

a. Balance Sheet

Assets

Current Assets:

12/31/2013

12/31/2014

Cash

1303

1145

Accounts Receivable

2490

2682

Inventory

5796

6022

Total Current Assets

9589

9849

Long-Term Assets:

Plant, property, and equipt

8393

9205

Accumulated depreciation

-2021

-2678

6372

6527

Total Assets

15961

16376

Liabilities

Current Liabilities:

12/31/2013

12/31/2014

Accounts Payable

1806

2053

Long-Term Liabilities:

Long-term Debt

7803

8195

Total Liabilities

9609

10248

Owner’s Equity:

Common Stock

4981

4981

Retained Earnings

1371

1147

Total Owner’s Equity

6352

6128

Total Liabilities and Owners Equity

15961

16376

b. Working Capital Accounts

1

Cash

Current Assets

2

Accounts Receivable

3

Inventory

4

Accounts Payable

Current Liabilities

c. Networking Capital

Current Assets:

12/31/2013

12/31/2014

Cash

1303

1145

Accounts Receivable

2490

2682

Inventory

5796

6022

Total Current Assets

9589

9849

Less: Current Liabilities

Accounts Payable

1806

2053

Net Working Capital

7783

7796

d. Changes in Net Working capital for 2014

Particulars

12/31/2013

12/31/2014

Net Working Capital

7783

7796

Change in Net Working Capital for 2014 (7796-7783) i.e., Increase in working capital

13

ekkarill92 answered 2 years ago
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