Simone Cooke is a producer of natural juices.on 31 January2018,she provided the following information about her assets and liabilities:
Inventory of frozen beverages on hand valued at $50000.
Simone Cooke owns an industrial blender valued at $200000.
A delivery van was bought at a total cost of $140000 on 3 January,using a six-year,20 percent per annum loan of $60000 from optimum beverages financing Ltd.
T.Farmer,who promised to supply some apples for the apple nectar blend,was paid $9000 in advance.
Simone Cooke owns refrigerators valued at $95000.
Health Food store was supplied with products,on credit,valued at $10000.The company promised to settled in March 2018.
Rent of $20000 is outstanding for the month of January.
Ultimate Muscle Builder Ltd owes Simone Cooke $15000 for products used to host an exercise symposium.
Simone Cooke holds $18000 in her bank account and $8000 in her cash register.
Additional Notes:
Interest charges on the loan from Optimum Beverages Financing Ltd have not yet been paid for the month of January 2018.
Simone Cooke has decided to depreciate the delivery van,using the straight line method of depreciation.She expects to get eight years of service from the van,at the end of which she anticipates she can sell it for $12000.You are to account for the month of January depreciation.
Required:
Using all the information provided above,prepare a classified statement of financial position(Balance Sheet) for Simone Cooke,in vertical style,as at 31January 2018.Use the order of Permanence in classifying assets.Show the working capital clearly.Round off all workings to the nearest whole number.
| Balance Sheet for for the year ended as on 31st January 2018 | |
| BALANCE SHEET | 2018 |
| Fixed assets | $4,19,000 |
| Refrigerators | $95,000 |
| Vehicles - Delivery Van | $1,24,000 |
| Equipment/tools - Blender | $2,00,000 |
| Computer equipment | |
| Current assets | $1,04,000 |
| Inventory | $50,000 |
| Sundry Debtors - Health food store | $10,000 |
| Sundry Debtors - Muscle Builder | $18,000 |
| Cash | $8,000 |
| Bank | $18,000 |
| Total assets | $5,23,000 |
| Long-term liabilities | $60,000 |
| Loans | $60,000 |
| Current/short-term liabilities | $30,000 |
| Advances paid to farmers | $9,000 |
| Rent Payable | $20,000 |
| Interest payable | $1,000 |
| Total liabilities | $90,000 |
| NET ASSETS (NET WORTH) | $4,33,000 |
| WORKING CAPITAL | $74,000 |
Simone Cooke is a producer of natural juices.on 31 January2018,she provided the following information about her assets and liabilities: Inventory of frozen beverages on hand valued at $50000. Simone C...