Question

The following statement of financial position was prepared by the bookkeeper for Badger Corp. at December 31, 2020. Badger Corp. Statement of Financial Position December 31, 2020 Cash$ 90,000Accounts payable$ 75,000 Accounts receivable (net)52,200Long-term liabilities110,000 Inventories57,000Shareholders' equity208,500 Investments76,300 Equipment (net)86,000 Patents 32,000 $393,500$393,500 The following additional information is provided: 1."Cash" includes prepaid insurance of $9,400; as well, a bank overdraft of $1,500 has been deducted.

Answer 1

Badger Corp

Statement of Financial Position

Current Assets
Cash (90,000-9400+1500)		82,100
Accounts receivable (62000 -57000)	57,000
Less: allowance for doubtful debts	-4800	52200
Inventories (57000 +5000)		62,000
Prepaid insurance		9400
Equipment held for sale (8000-6000)		2,000
Investments held for trading		24,000
Total current assets		231,700
Investments- Long term		43,300
Property, Plant & Equipment ($86,000 + $40,000 – $8,000 + $6,000)	124000
Less: accumulated depreciation	-40000	84,000
Intangible assets -
Patents		32000
Franchises - investments		9000
Total Assets		400,000
Liabilities and shareholders' equity
Current Liabilities
Accounts Payable ($75,000 + $5,000)		80,000
Bank Overdraft		1,500
Total current liabilities		81,500
Long term liabilities		110000
Total Liabilities		191500
Shareholders equity		208500
Total Liabilities and shareholders' equity		400,000