Use the starting balance sheet and statement of cash flows to answer the question. Torche Corporation Balance Sheet As of December 31, 2022 (amounts in thousands) Cash Accounts Receivable Inventory Property Plant & Equipment, Gross Accumulated Depreciation Property Plant & Equipment, Net Other Assets Total Assets Torche Corporation Statement of Cash Flows January 1 to March 31, 2023 (amounts in thousands) Net Income Depreciation 147,000 Accounts Payable 48,000 Debt 38,000 218,000 Total Liabilities 60,000 Other Liabilities 9,000 Paid-In Capital 158,000 Retained Earnings Total Equity 400,000 Total Liabilities & Equity 8,500 2,000 24,000 37,000 50,000 111,000 60,000 229,000 289,000 400,000 Net Cash Flow from Investing Activities Increase (Decrease) in Debt Dividends Other Adjustments Net Cash Flow from Financing Activities Net Cash Flow (5,400) 100 (300) 0 (200) 3,400 What is the value for Total Liabilities & Equity on March 31, 2023? Please specify your answer in the same units as the financial statements (ie, enter the number from your updated balance sheet).
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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