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a. Reconstruct the balance sheet for 2016 and 2017 using a spreadsheet, and find the change in each account and each category balance (current assets, long-term assets, total assets, current liabilities, total liabilities, total owners' equity, and total liabilities and owners' equity) from 2016 to 2017. The balance sheet has the same accounts in both years. Verify that the change in the total assets equals the change in the total liabilities and owners' equity. b. Find the cash from assets for 2016 if the OCF for that year is $389,000. Note: Treat intangible assets as a capital spending item. 2. Balance sheet. Reach Manufacturing has lost its computer systems and must reconstruct the last two years of its balance sheet. The company has been able to get the following information out of its crashed computer: Cash Accounts receivable Inventory Total current assets Fixed assets 2016 Information $ 23,000 $ 518,000 $ 639,000 $1,242,000 $4,387,000 Intangible assets $ 465,000 Total assets $5,085,000 Accounts payable $ 419,000 Notes payable Long-term debt Common stock $ 390,000 $3,540,000 $ 330,000

a. Reconstruct the balance sheet for 2016 and 2017 using a spreadsheet, and find the change in each account and each category balance (current assets, long-term assets, total assets, current liabilities, total liabilities, total owners' equity, and total liabilities and owners' equity) from 2016 to 2017. The balance sheet has the same accounts in both years. Verify that the change in the total assets equals the change in the total liabilities and owners' equity. b. Find the cash from assets for 2016 if the OCF for that year is $389,000. Note: Treat intangible assets as a capital spending item. 2. Balance sheet. Reach Manufacturing has lost its computer systems and must reconstruct the last two years of its balance sheet. The company has been able to get the following information out of its crashed computer: Cash Accounts receivable Inventory Total current assets Fixed assets 2016 Information $ 23,000 $ 518,000 $ 639,000 $1,242,000 $4,387,000 Intangible assets $ 465,000 Total assets $5,085,000 Accounts payable $ 419,000 Notes payable Long-term debt Common stock $ 390,000 $3,540,000 $ 330,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. Reconstruct the balance sheet for 2016 and 2017 using a spreadsheet, and find the change in each account and each category balance (current assets, long-term assets, total assets, current liabilities, total liabilities, total owners' equity, and total liabilities and owners' equity) from 2016 to 2017. The balance sheet has the same accounts in both years. Verify that the change in the total assets equals the change in the total liabilities and owners' equity. b. Find the cash from assets for 2016 if the OCF for that year is $389,000. Note: Treat intangible assets as a capital spending item.
Transcribed Image Text:a. Reconstruct the balance sheet for 2016 and 2017 using a spreadsheet, and find the change in each account and each category balance (current assets, long-term assets, total assets, current liabilities, total liabilities, total owners' equity, and total liabilities and owners' equity) from 2016 to 2017. The balance sheet has the same accounts in both years. Verify that the change in the total assets equals the change in the total liabilities and owners' equity. b. Find the cash from assets for 2016 if the OCF for that year is $389,000. Note: Treat intangible assets as a capital spending item.
2. Balance sheet. Reach Manufacturing has lost its computer systems and must reconstruct the last two years of its balance sheet. The company has been able to get the following information out of its crashed computer: Cash Accounts receivable Inventory Total current assets Fixed assets 2016 Information $ 23,000 $ 518,000 $ 639,000 $1,242,000 $4,387,000 Intangible assets $ 465,000 Total assets $5,085,000 Accounts payable $ 419,000 Notes payable Long-term debt Common stock $ 390,000 $3,540,000 $ 330,000
Transcribed Image Text:2. Balance sheet. Reach Manufacturing has lost its computer systems and must reconstruct the last two years of its balance sheet. The company has been able to get the following information out of its crashed computer: Cash Accounts receivable Inventory Total current assets Fixed assets 2016 Information $ 23,000 $ 518,000 $ 639,000 $1,242,000 $4,387,000 Intangible assets $ 465,000 Total assets $5,085,000 Accounts payable $ 419,000 Notes payable Long-term debt Common stock $ 390,000 $3,540,000 $ 330,000
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