Constructing Company X Balance Sheet as of 31.12.20
What is the balance sheet for Company X as of 31.12.20?
How can we organize the given data into assets, liabilities, and equity?
Company X Balance Sheet as of 31.12.20
The balance sheet for Company X as of 31.12.20 is as follows:
Explanation:
To construct a balance sheet for Company X as of 31.12.20, we need to organize the given information into three main sections: assets, liabilities, and equity.
Assets:
- Inventory: $150,000
- Cash: $80,000
- Accounts Receivables: $55,000
- Property, Plant, Equipment: $75,000
Liabilities:
- Long-term loans: $175,000
- Short-term loans: $30,000
- Accounts Payables: $45,000
- Interest expense: $5,000
Equity:
To calculate the equity, we subtract the total liabilities from the total assets:
Total Assets = Inventory + Cash + Accounts Receivables + Property, Plant, Equipment
Total Liabilities = Long-term loans + Short-term loans + Accounts Payables + Interest expense
Equity = Total Assets - Total Liabilities
Now, let's calculate the values:
Total Assets = $150,000 + $80,000 + $55,000 + $75,000 = $360,000
Total Liabilities = $175,000 + $30,000 + $45,000 + $5,000 = $255,000
Equity = $360,000 - $255,000 = $105,000
Therefore, the balance sheet for Company X as of 31.12.20 is as follows:
- Assets:
- Inventory: $150,000
- Cash: $80,000
- Accounts Receivables: $55,000
- Property, Plant, Equipment: $75,000
- Liabilities:
- Long-term loans: $175,000
- Short-term loans: $30,000
- Accounts Payables: $45,000
- Interest expense: $5,000
- Equity: $105,000