4. Clearly state the impact of the following events on Hal's Balance Sheet and show the impact on specific line items in the year-end 2022 balance sheet: FOR EXAMPLE: The company sells $5,000 of equipment in 2021... The resulting value of the equipment would decline by $5,000 to $295,000 and the amount of the cash would increase by $5,000 to $105,000 and there would be no change to liabilities or shareholders' equity. a. The company uses $50,000 of cash to pay off the short-term debt on 1/1/2022 Over the year, the company collects all of its accounts receivable but, by the end of the year the company has new accounts receivable of $25K b. Over the year, the company sells all of its inventories and buys another $25K of inventories that it has on the shelf at the end of 2022 d. The company uses cash to buy another ice cream cart on 12/30/2022 for $25K e. On January 1, the company takes out a new long-term loan for $500,000. The company uses the loan proceeds to pay off the old long-term loan. Assume there are no other year-over-year changes at the company. C.

4. Clearly state the impact of the following events on Hal's Balance Sheet and show the impact on specific line items in the year-end 2022 balance sheet: FOR EXAMPLE: The company sells $5,000 of equipment in 2021... The resulting value of the equipment would decline by $5,000 to $295,000 and the amount of the cash would increase by $5,000 to $105,000 and there would be no change to liabilities or shareholders' equity. a. The company uses $50,000 of cash to pay off the short-term debt on 1/1/2022 Over the year, the company collects all of its accounts receivable but, by the end of the year the company has new accounts receivable of $25K b. Over the year, the company sells all of its inventories and buys another $25K of inventories that it has on the shelf at the end of 2022 d. The company uses cash to buy another ice cream cart on 12/30/2022 for $25K e. On January 1, the company takes out a new long-term loan for $500,000. The company uses the loan proceeds to pay off the old long-term loan. Assume there are no other year-over-year changes at the company. C.

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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