Question

6. What is the net book value of The Foxtail's fixed assets at the end of 20X27 Mbit the owner of The Foxtail, a small lodging operation, has asked for your help in understanding the balance sheets for 20X1 and 20X2. She is able to present you with the Problem 14 the USALL. No PT AC Ot condensed balance sheets as follows: The Foxtail Condensed Balance Sheets December 31, 20X1 and 20X2 20X1 $ 10,000 26,500 10,000 200,000 (20,000) $ 226,500 Cash Accounts receivable Investments Equipment Accumulated depreciation Total Assets Current liabilities: Accounts payable Mortgage payable (current) Liabil Liabil Aca Inco Divis Curr Long Defer To 20X2 $ 12.000 18,500 20,000 325,000 (64,000) $ 311,500 $ 18,000 5,000 5,000 $ 21,000 22,000 8,000 Dividends payable Noncurrent liabilities: Mortgage payable Notes payable Common stock Treasury stock Stockhol Comm outst Additi Retaine Treasur Tota 110,000 75,000 20,000 70,000 (20,000) 53,500 226,500 Total Liabi 100,000 (30,000) 80,500 $ 311,500 Retained earings Total Liabilities and Owners' Equity Required: Answer the following questions. 1. What amount of existing debt must be paid during 20x3? 2. What is the total of current assets at the end of 20X2? 1 What is the amount of net working capital at the end of 20X2? He has the change in accounts receivable during 2012 affected cash at the end of How much does The Foxtail owe its stockholders at the end of 20X2? Additional Info 1. During 20) gain from the 2. Assume $50 3. Assume Me the increase 4. Assume $450 Based on the above 1. What were the 2. The total net b

Answer 1

As per the rules of Chegg I can answer only 4 sub-parts of a question

1. The amount of debt that must be paid during 20X3 would be the short term or current debt since those are the ones that become liable within one year.
   Hence, the answer is Mortgage Payable (Current) = $22,000
   
2. As per the given data, Current Assets include Cash and Accounts Receivables.
   Hence Total Current Assets for 20X2 = $12,000 + $18,500 = $30,500
   
3. Net Working Capital = Total Current Assets - Total Current Liabilities
   = (12,000 + 18,500) - (21,000 + 22,000 + 8,000) = - $20,500
   
4. Since recovery of Accounts receivables implies cash inflow for the business, reduction in the value of Accounts Receivables results in increase in cash balance. Hence the change in accounts receivable during the year has a positive or incremental effect on cash.