Question

(Related to Checkpoint 3.2) (Review of financial statements) A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is found here: a. How much is the firm's net working capital? b. Complete an income statement and a balance sheet for Belmond. c. If you were asked to respond to parts (a) and (b) as part of a training exercise, what could you tell your boss about the company's financial condition based on your answers? a. How much is the firm's net working capital? The firm's net working capital is $ . (Round to the nearest dollar.) 0 Data Table (Click on the icon in order to copy its contents into a spreadsheet.) Inventory 6,490 Common stock 44,980 Cash 16,590 Operating expenses 1,390 Short-term notes payable 610 Interest expense 870 Depreciation expense 470 Sales 12,800 Accounts receivable 9,600 Accounts payable 4,770 Long-term debt 54,700 Cost of goods sold 5,720 Buildings and equipment 121,690 Accumulated depreciation 34,190 Taxes 1,460 General and administrative expense 880 Retained earnings Clear All Check Ansv

Answer 1

Pageno Answer: b) Income Statement Belmond Inc Statement of Net Income Particulond Qales 12800 cost of Goods sold 5120 Gross profit 1080 Operating Expense 1390 Depreciation Expense чо Intrest Expense 870 şelling and Admin Experte 880 3610 Profit Before Tax 3440 Тах 1460 Net Income 2010

PageNo@ Assets Current Asset 16590 9600 6490 Cash Account Receivable Inventory Total Current Asset Building and Equipment.net Total Assets 32680 87500 120180 Liabilited and Equity 9,600 610 Accounts payable short term Notes Total current liabilitch Long Term Debt Total Liabilities 10210 54,700 64,910

pageno Equity common stock 44.980 Retained Eviningą . 10290 Total Equity 5sato Long Term Debt 54, 4oo Total liabilites 64,910 Equity common stock 44980 Retained Earnings Total Equity 10290 55240 Total liabilitel and Equity 120186 Ketained Earnings = Total Adsets - Total liabilities -Commonstock, - 120180-64910-44980 =10290

Pageno 9 Networking Capital = Current Aşsets-ccorrent liabilitiel = 32680-10210 = 22440 The firm's networking Capital = $22470