The Health and Operational State of Nybrostrand Company Essay

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Nybrostrand Company's organization of the information for balance sheet and income statement are in disarray. The Trail Balance listed all expenses, liabilities, assets, and equity, but not indentified for operating expenses, revenues, current and concurrent assets, current and long-term liability, and accounts for equity. Items utilized to create the income statement revenues, salaries, utilities, rent, insurance, depreciation expense, cost of goods sold, and marketing, with intended goal of finding the net income of the company. The balance sheet utilizes the remaining items cash, accounts payable, accounts receivable, common stock, equipment (net of depreciation), long-term debt, paid-in capital, property taxes, and retained …show more content…

The company's financial health and stability are measured by the balance sheet and shows the amount of equity versus liabilities. Generating the total current assets of a company, total assets equal the calculation of cash ($50,000), and inventory ($34,000), and plus accounts receivable ($50,000), with the current assets equivalent of $134,000. Concurrent assets listed by Nybrostrand is only equipment (net of depreciation) $415,000, with the concurrent assets equaling $415,000. Total assets equals $549,000 from the sum of concurrent assets ($415,000) added to current assets ($134,000). The information solves the first half of the accounting equation ($549,000 = liabilities + equity). Liabilities are broken into two categories current and long-term liabilities. Current liabilities equal the figure of accounts receivable ($78,000) and property taxes ($16,900), with current liabilities sum being $94,900. Long-term liabilities there is only one long-term debt $127,000, meaning long-term liabilities are $127,000. Total liabilities figure ($221,900) is the computation of current liabilities and long-term liabilities. The accounting equation at the moment assets ($549,000) = liabilities ($221,900) + equity (unknown). To find the equity of the, the equity of a company consists of stocks, money contributed by the owner, and shareholder contributions, just to name a few. Base

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