Question

* MindTap - Cengage Learning M Inbox (1) - nashikawohawaii.ec x C Get Homework Help With Cher x E Mini Project Assignment 1- Go X ng.cengage.com/static/nb/ui/evo/index.html?elSBN=9781337911009&id3D667498820&snapshotld=1511778& * CENGAGE MINDTAP Q Search this course Are You Ready for Corporate Finance? Topic 3 of 5 : Financial Statement Fundamentals for Finance Step 1: Assess your knowledge ఏ A-Z Following is a sample balance sheet. In Part A, match each asset to its definition from the drop-down list. In Part B, match each liability or equity to its definition from the drop-down list: Balance Sheet Current Assts Current lab e Anvounts PaTethie S 1500.00 Cash 5.000.00 Shor-Ten Netas Payane Anerued shltie Total Cumen wt lan Term lahke S 2.000.00 PMarcetahle Securtie 4,200. Aennunt leceluahie 5000.0 S 5000.0 10 Invemre 7.900.00 11 Реrали Eaрегяря 2700.00 12 Totai Current 4sets Long-Term Deht S30 c.co 13 Tatal Lang-Term L'abie Tetal lab ics Long Tem Asets Property, Planm, and Eruioment Lese: Accumulated Depreciotion Net Proserty, Pan, and Eaukment 14 S25.000.00 $ 17.000.00 $ $ 15000.0 15 Eguity S 5000.00 S 10,000.00 $ 10,.000.00 16 s 2.000.00 Preterred Stock IT Common fnock Retained larsing S 18 Inang bie hse 10.000.00 Total Epuie Tatal Liw ans iquty Triel has. Lona Term Auasta S15,000.00 19 25000.00 Istai Aasets 21 22 Part A Cash cash or cash equivalents Marketable Securities Accounts Receivable Inventories Prepaid Expenses Property, Plant, and Equipment Areumulbad Banenrintion Auto-saved I'm Done Next Question

Answer 1

Solution: Matching each asset to its definition: Part A Cash Cash or Cash Equivalents Marketable Securities excess cash can be invested into these highly liquid instruments represents credit sales that have not yet been collected Accounts Receivable Inventories goods and materials the firm has on hand Prepaid Expenses costs such as rent and insurance that may be paid in advance Property, Plant and Equipment Accumulated Depreciation acquisition value of assets required to support the firm adjustments to values of assets due to aging Intangible Assets may include trademarks, patents and goodwill Matching each liability to its definition: Part B Accounts Payable Short-term Notes Payable money the firm owes its customers due to purchases made on credit Short-term loans of less than a year Accrued Liabilities expenses the firm owes that have not yet been paid bank loans or bonds issued to outside investors that extend beyond Long-Term Debt Preferred Stock one-year duration a hybrid security that has characteristics of both debt and equity Common Stock represents ownership stake in the firm Retained Earnings money the firm keeps for future growth in excess of dividends paid out Total Common Equity residual value of the firm