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?
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Condensed Balance Sheet |
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Cash |
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Operating liabilities |
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Receivables |
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Interest-bearing liabilities |
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Inventory |
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Owners’ invested capital |
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PP&E, net |
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Owners’ retained earnings |
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Assets |
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Liabilities and Owners’ Equity |