BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Solutions

Chapter
Section
BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

a. Use the following financial information to prepare a balance sheet with vertical analysis as of June 30, 2015, for Stargate Industries. Inc.: cash. $44,300; accounts receivable. $127,600; merchandise inventory. $88,100; prepaid maintenance. $4,100; office supplies. $4,000; land. $154,000; building. $237,000; fixtures. $21,400; vehicles. $64,000; computers, $13,000; goodwill, $20,000; investments. $32,000; accounts payable. $55,700; salaries payable. $23,200; notes payable (6-month). $38,000; mortgage payable. $91,300; debenture bonds. $165,000; common stock. $350,000; and retained earnings. $86,300.

Stargate Industries. Inc.

Balance Sheet

June 30, 2015

b. The following financial information is for Stargate Industries as of June 30, 2016: cash. $40,200; accounts receivable. $131,400; merchandise inventory. $92,200; prepaid maintenance. $3,700; office supplies. $6,200; land. $154,000; building. $231,700; futures. $23,900; vehicles; $55,100; computers. $16,800; goodwill. $22,000; investments. $36,400; accounts payable. $51,800; salaries payable. $25,100; notes payable (6-month). $19,000; mortgage payable. $88,900; debenture bonds. $165,000; common stock. $350,000; and retained earnings. $113,800.

Prepare a comparative balance sheet with horizontal analysis for 2015 and 2016.

Stargate Industries. Inc.

Comparative Balance Sheet

June 30, 2015 and 2016

(a)

To determine

To calculate: The balance sheet with vertical analysis as of June 30, 2015 of Stargate industries, Inc. which has cash of $44,300, accounts receivables of $127,600, merchandise inventory of $88,100, prepaid maintenance of $4,100, office supplies of $4,000, land of $154,000, building of $237,000, fixtures of $21,400, vehicles of $64,000, computers of $13,000, goodwill of $20,000, investments of $32,000, accounts payable of $55,700, salaries payable of $23,200, notes payable of $38,000, mortgage payable of $91,300, debenture bonds of $165,000, common stock of $350,000, retained earnings of $86,300.

Explanation

Given Information:

Stargate industries, Inc. which has cash of $44,300, accounts receivables of $127,600, merchandise inventory of $88,100, prepaid maintenance of $4,100, office supplies of $4,000, land of $154,000, building of $237,000, fixtures of $21,400, vehicles of $64,000, computers of $13,000, goodwill of $20,000, investments of $32,000, accounts payable of $55,700, salaries payable of $23,200, notes payable of $38,000, mortgage payable of $91,300, debenture bonds of $165,000, common stock of $350,000, retained earnings of $86,300.

Formula used:

The formula to compute the owner’s equity is,

Owner's equity=(Current assets+Property, plant and equipment+investment+other assets)(Current liabilities+Long term liabilities)

Follow the steps to prepare a balance sheet

Step 1: At the top of the page, write the name of the company, type of sheet and date of preparation

Step 2: Prepare a section labeled as Assets and list three heads as all Current Assets, Property, Plant and Equipment and Investments and Other Assets.

Step 3: Add the above three heads to obtain the Total Assets.

Step 4: Double underline Total Assets.

Step 5: Name a section as Liabilities and Owner’s Equity and make two sub-heads as Current Liabilities and Long-Term Liabilities.

Step 6: Sum the two heads of liabilities to obtain the Total Liabilities.

Step 7: Total the Owner’s or Stockholder’s Equity.

Step 8: Add the Total Liabilities and Owner’s Equity

Step 9: Double underline Total Liabilities and Owner’s Equity.

Calculation:

Consider the provided infor4mation,

Compute Total Current Assets by adding all the current assets:

Total Current Assets=Cash+Accounts receivables+Merchandise inventory+Prepaid maintenance+Supplies=$44,300+$127,600+$88,100+$4,100+$4,000=$268,100

Compute total of Property, Plant and Equipment by adding all Property, Plant and Equipment

Total of Property, Plant and Equipment=Land+Building+Fixtures+Vehicles+Computers+Goodwill+Investments=$154,000+$237,000+$21,400+$64,000+$13,000+$20,000+$32,000=$545,800

Compute Total Assets by adding the current assets and property, plant and equipment.

Total Assets=Total Current Assets+Total of Property, Plant and Equipment=$268,100+$545,800=$813,900

Compute Total Current Liabilities by adding all current liabilities.

Total Current Liabilities=Accounts payable+Salaries payable+Notes payable+Mortgage payable=$55,700+$23,200+$38,000+$91,300=$208,200

Compute Total Liabilities by adding total current liabilities to total long-term liabilities

(b)

To determine

To calculate: The comparative balance sheet with horizontal analysis of Stargate industries, Inc. which has cash of $40,200, accounts receivables of $131,400, merchandise inventory of $92,200, prepaid maintenance of $3,700, office supplies of $6,200, land of $154,000, building of $231,700, fixtures of $23,900, vehicles of $55,100, computers of $16,800, goodwill of $22,000, investments of $36,400, accounts payable of $51,800, salaries payable of $25,100, notes payable of $19,000, mortgage payable of $88,900, debenture bonds of $165,000, common stock of $350,000, retained earnings of $113,800.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 15 Solutions

Show all chapter solutions add
Sect-15.I P-8RESect-15.I P-9RESect-15.I P-10RESect-15.I P-11RESect-15.I P-12RESect-15.I P-13RESect-15.I P-14RESect-15.I P-15RESect-15.I P-16RESect-15.I P-17RESect-15.I P-18RESect-15.I P-19RESect-15.I P-20RESect-15.I P-21RESect-15.I P-22RESect-15.I P-23RESect-15.I P-24RESect-15.I P-25RESect-15.I P-26RESect-15.I P-27RESect-15.I P-28RESect-15.I P-29RESect-15.I P-30RESect-15.I P-31RESect-15.I P-32RESect-15.I P-33RESect-15.I P-34RESect-15.I P-35RESect-15.II P-4TIESect-15.II P-5TIESect-15.II P-6TIESect-15.II P-1RESect-15.II P-2RESect-15.II P-3RESect-15.II P-4RESect-15.II P-5RESect-15.II P-6RESect-15.II P-7RESect-15.II P-8RESect-15.II P-9RESect-15.II P-10RESect-15.II P-11RESect-15.II P-12RESect-15.II P-13RESect-15.II P-14RESect-15.II P-15RESect-15.III P-7TIESect-15.III P-8TIESect-15.III P-1RESect-15.III P-2RESect-15.III P-3RESect-15.III P-4RESect-15.III P-5RESect-15.III P-6RESect-15.III P-7RESect-15.III P-8RESect-15.III P-9RESect-15.III P-10RESect-15.III P-11RESect-15.III P-12RESect-15.III P-13RESect-15.III P-14RESect-15.III P-15RESect-15.III P-16RESect-15.III P-17RESect-15.III P-18RESect-15.III P-19RESect-15.III P-20RESect-15.III P-21RESect-15.III P-22RESect-15.III P-23RESect-15.III P-24RESect-15.III P-25RESect-15.III P-26RESect-15.III P-27RESect-15.III P-28RESect-15.III P-29RESect-15.III P-30RESect-15.III P-31RESect-15.III P-32RESect-15.III P-33RECh-15 P-1CRCh-15 P-2CRCh-15 P-3CRCh-15 P-4CRCh-15 P-5CRCh-15 P-6CRCh-15 P-7CRCh-15 P-8CRCh-15 P-9CRCh-15 P-10CRCh-15 P-11CRCh-15 P-12CRCh-15 P-13CRCh-15 P-14CRCh-15 P-1ATCh-15 P-2ATCh-15 P-3ATCh-15 P-4ATCh-15 P-5ATCh-15 P-6ATCh-15 P-7ATCh-15 P-8ATCh-15 P-9ATCh-15 P-10ATCh-15 P-11ATCh-15 P-12ATCh-15 P-13ATCh-15 P-14ATCh-15 P-15ATCh-15 P-16ATCh-15 P-17ATCh-15 P-18ATCh-15 P-19ATCh-15 P-20ATCh-15 P-21ATCh-15 P-22ATCh-15 P-23ATCh-15 P-24AT

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

Find an equation of the horizontal line that passes through (4, 3).

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Evaluate the expression sin Exercises 116. (23)2

Finite Mathematics and Applied Calculus (MindTap Course List)

Graphing Parabolas Use a graphing device to graph the parabola. 27. y2=13x

Precalculus: Mathematics for Calculus (Standalone Book)

Evaluate the integral. 12. 2x3x3+3xdx

Single Variable Calculus: Early Transcendentals

Add or subtract as indicated. (5155)+(3745)

Trigonometry (MindTap Course List)

A population of ants on an island is modeled by , where t is the number of years since 1970. How long did it ta...

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th