Does the balance sheet presented below give any indication of how old the company is, or how many years it has been in business? Are there any particular accounts or other items in the balance sheet that indicate whether the company is fairly new or has been around for many years?
|
Assets |
Liabilities & Owners’ Equity |
||
|
Cash |
$1,500,000 |
Accounts Payable |
$700,000 |
|
Accounts Receivable |
$1,000,000 |
Accrued Expenses Payable |
$600,000 |
|
Inventory |
$1,800,000 |
Short-term Notes Payable |
$1,500,000 |
|
Prepaid Expenses |
$300,000 |
Total Current Liabilities |
$2,800,000 |
|
Total Current Assets |
$4,600,000 |
Long-term Notes Payable |
$2,000,000 |
|
Property, Plant, & Equipment |
$4,800,000 |
Owners Equity: |
|
|
Accumulated Depreciation |
($1,400,000) |
Capital Stock (10,000 shares) |
$1,000,000 |
|
Cost Less Depreciation |
$3,400,000 |
Retained Earnings |
$2,200,000 |
|
Total Assets |
$8,000,000 |
Total Owners’ Equity |
$3,200,000 |
|
Total Liabilities & Owners’ Equity |
$8,000,000 |
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