BE1-1 Presented below is the basic accounting equation (in thousands). Determine the missing amounts. Assets = Liabilities + Equity 90‚000 = 50‚000 + 40‚000 110‚000 = 40‚000 + 70‚000 ------------------------------------------------- 94‚000 = 41‚000 + 53‚000 BE1-5 Indicate whether each of the following items is an asset (A)‚ liability (L)‚ or part of equity (E). (A) Accounts receivable (L) Salaries and wages payable (A) Equipment (A) Supplies
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person owns. Including Liabilities Liabilities are debts or amounts of money that are owed to others by an individual or a business. Owner’s Equity or Net Worth A person’s or business’ assets‚ after all liabilities are deducted‚ is known as owner’s equity or net worth Balance Sheet Equations The balance sheet equation can be expressed in two ways: 1. To determine owner’s equity: Assets – Liabilities = Owner’s Equity 2. To determine total assets: Assets = Liabilities + Owner’s Equity Preparing
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ChaNoel A. Torres Acevedo Intermediate Accounting I Homework: Exercise 3-1: Apr. | 2 | Cash | 30‚000 | | | | Equipment | 14‚000 | | | | Christine Ewing‚ Capital | | 44‚000 | | | | | | | 2 | No entry—not a transaction. | | | | | | | | | 3 | Supplies | 700 | | | | Accounts Payable | | 700 | | | | | | | 7 | Rent Expense | 600 | | | | Cash | | 600 | | | | | | | 11 | Accounts Receivable
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1. Current Ratio = Current Assets / Current Liabilities Edison = 12‚800 / 3‚600 = 3.56 Stagg = 13‚800 / 3‚600 = 3.83 Thornton = 13‚800 / 3‚600 = 3.83 Quick Ratio = Quick Assets / Current Liabilities Edison = 11‚000 / 3‚600 = 3.05:1 Stagg = 10‚000 / 3‚600 = 2.78:1 Thornton
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Ref http://www.planware.org/workingcapital.htm http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-assets.asp#axzz2IlyBIIT7 http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp#axzz2IlyBIIT7 Morris‚ A(2009) of KPMG http://www.accountingnet.ie/in_practice/Reducing_Working_Capital_Through_Managing_Debtors_-_Part_II.php Mehar‚ A. 2001. Impacts of Equity Financing on Liquidity Position of a
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Toyota Motor Financing Activities Debt to Equity (Total Liabilities / Total Equity) [pic] This ratio measures the financial leverage of a company by indicating what proportion of debt and equity a company is using to finance its assets. A lower number suggests there is both a lower risk involved for creditors and strong‚ long-term‚ financial security for a company. Based on the debt ratio of Toyota‚ as of 2009‚ the debt ratio is much higher than of other financial year. The year to year
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------------------------------------------------- $10‚688 | ------------------------------------------------- $9‚870 | | | | Liabilities and Stockholders’ Equity | | | Current liabilities | $2‚584 | $2‚612 | Long-term liabilities | 1‚079 | 973 | Stockholders’ equity | ------------------------------------------------- 7‚025 | ------------------------------------------------- 6‚285 | Total liabilities and stockholders’ equity | ------------------------------------------------- $10‚688 | -------------------------------------------------
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$1‚952‚580 Company A Tropical Wave Corporation Partial Balance Sheet 31-Dec Current Assets: Current Liabilities: Cash $512‚863 Accounts Payable $250‚000 Accounts Receivable‚ net 734580 Long-term Liabilities: Water Sports Equipment Inventory 620‚000 Bonds Payable 450‚000 Lotion Inventory 560000 Other 100‚000 Other 8‚825 Total Liabilities $800‚000 Total Current Assets
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Secured Loans | 5‚368.76 | 5‚039.91 | 4‚842.43 | 2‚622.52 | 592.38 | 716.71 | Unsecured Loans | 3‚350.26 | 1‚986.31 | 3‚080.17 | 3‚043.04 | 342.00 | 200.00 | Total Debt | 8‚719.02 | 7‚026.22 | 7‚922.60 | 5‚665.56 | 934.38 | 916.71 | Total Liabilities | 3‚636.62 | 4‚075.03 | 4‚044.65 | 3‚532.10 | 1‚123.16 | 1‚290.39 | APPLICATION OF FUNDS : | | | | | | | Gross Block | 2‚238.72 | 2‚254.26 | 2‚048.13 | 1‚891.80 | 322.33 | 340.77 | Less : Accumulated Depreciation | 795.69 | 682
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information for operating alternatives‚ projection of income of a new range of products‚ and forecasts of cash required for planning purposes. A. An inland revenue officer B. A labor union leader C. A tax agent D. A company’s manager 5. If the liabilities of a business decreased by RM3‚000 during a period of time and the owner’s equity in the business decreased by RM20‚000 during the same period‚ the assets of the business must have: A. decreased by RM17‚000 B. decreased by RM23‚000 C.
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