Concept explainers
Prepare the following statements on separate sheets of paper.
a. Use the following financial information to calculate the owner’s equity and prepare a balance sheet with vertical analysis as of December 31. 2015. for Victory Lane Sporting Goods, a sole proprietorship owned by Kyle Pressman: current assets. $157.600; property, plant, and equipment. $42,000: investments and other assets. $38.700: current liabilities. $21.200: and long-term liabilities. $53,400.
Victory Lane Sporting Goods
Balance Sheet
December 31.2015
b. The following financial information is for Victory Lane Sporting Goods as of December 31. 2016: current assets, $175,300: property, plant, and equipment. $43,600: investments and other assets. $39,200: current liabilities. $27,700; and long-term liabilities. $51.000.
Calculate the owner’s equity for 2016 and prepare a comparative balance sheet with horizontal analysis for 2015 and 2016.
Victory Lane Sporting Goods
Comparative Balance Sheet
December 31,2015 and 2016
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 15 Solutions
Contemporary Mathematics For Business & Consumers, Brief Edition, Loose-leaf Version
- draw the cash flow diagram, and write the general formula of the perpetuityarrow_forwardJan Petri is the stockholder and operator of Galaxy LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Galaxy has assets of $788,000 and liabilities of $189,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2.$fill in the blank 1 b. Stockholders' equity as of December 31, 20Y3, assuming that assets increased by $150,000 and liabilities decreased by $45,000 during 20Y3.$fill in the blank 2arrow_forwardComplete the amortization table belowarrow_forward
- Consider an investment of $1,500 for four years at 3.75% simple interest. a. Find the amount of simple interest earned. b. Find the accumulated amount.arrow_forwardCalculate the total cost, proceeds, total gain (or loss), and return on investment for the given mutual fund. The offer price is the purchase price of the shares, and the net asset value is the price at which the shares were later sold. Shares Offer Price Total Cost Net Asset Value Proceeds Per Share Dividends Total Gain (or Loss) Return on Investment % 300 $10.35 ? $12.95 ? .76 ? ?arrow_forwardThe Fluffy Laundromat purchased new washing machines and dryers for $62,000. The machines are expected to last 4 years and have a residual value of $10,000. Prepare a depreciation schedule by using the 150% declining-balance method. End ofYear AnnualDepreciation AccumulatedDepreciation BookValue 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $10,000arrow_forward
- Determine the effect on the balance sheet after the following transaction. You sell a product purchased for $750 for $1,500.00. This means:arrow_forwardSHOW COMPLETE SOLUTIONS. DRAW CASH FLOW DIAGRAMS.arrow_forwardA bond with a face value of $6000 and a 4.4% coupon has a 5 year maturity. Find the annual interest paid to the bondholder.arrow_forward
- Calculate the total cost of interest for both mortgage options. How much does the buyers have an interest with the 15- ear option?arrow_forwardA bond with a face value of $4000 and a 3.8% coupon has a 5-year maturity. Find the annual interest paid to the bondholder.arrow_forwardFor the second mortgage application, calculate the percentage of appraised value and the potential credit (in $). AppraisedValue ender'sPercentage Percentage ofAppraised Value (in $) Balance ofFirst Mortgage PotentialCredit (in $) $356,900 75% $ $198,500 $arrow_forward
- Discrete Mathematics and Its Applications ( 8th I...MathISBN:9781259676512Author:Kenneth H RosenPublisher:McGraw-Hill EducationMathematics for Elementary Teachers with Activiti...MathISBN:9780134392790Author:Beckmann, SybillaPublisher:PEARSON
- Thinking Mathematically (7th Edition)MathISBN:9780134683713Author:Robert F. BlitzerPublisher:PEARSONDiscrete Mathematics With ApplicationsMathISBN:9781337694193Author:EPP, Susanna S.Publisher:Cengage Learning,Pathways To Math Literacy (looseleaf)MathISBN:9781259985607Author:David Sobecki Professor, Brian A. MercerPublisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259676512/9781259676512_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134392790/9780134392790_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781938168024/9781938168024_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134683713/9780134683713_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337694193/9781337694193_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259985607/9781259985607_smallCoverImage.gif)