Building on your answer, assume that the business had other non-profit transactions during the year, as follows:

_ Increased its interest-bearing liabilities $100,000.

_ Paid $80,000 distribution from profit to its shareowners

Taking into account these additional transactions, what is the financial condition of the business at the end of the year?

Condensed Balance Sheet

Cash

 

Operating liabilities

Receivables

 

Interest-bearing liabilities

Inventory

 

Owners’ invested capital

PP&E, net

 

Owners’ retained earnings

Assets

=

Liabilities and Owners’ Equity