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 $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.
a. Balance Sheet |
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Assets |
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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: |
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Plant, property, and equipt |
8393 |
9205 |
Accumulated depreciation |
-2021 |
-2678 |
6372 |
6527 |
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Total Assets |
15961 |
16376 |
Liabilities |
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Current Liabilities: |
12/31/2013 |
12/31/2014 |
Accounts Payable |
1806 |
2053 |
Long-Term Liabilities: |
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Long-term Debt |
7803 |
8195 |
Total Liabilities |
9609 |
10248 |
Owner’s Equity: |
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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 |
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1 |
Cash |
Current Assets |
2 |
Accounts Receivable |
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3 |
Inventory |
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4 |
Accounts Payable |
Current Liabilities |
c. Networking Capital |
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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 |
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Accounts Payable |
1806 |
2053 |
Net Working Capital |
7783 |
7796 |
d. Changes in Net Working capital for 2014 |
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Particulars |
12/31/2013 |
12/31/2014 |
|
Net Working Capital |
7783 |
7796 |
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Change in Net Working Capital for 2014 (7796-7783) i.e., Increase in working capital |
13 |
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