Question

2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Cute Camel Woodcraft Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheets for Cute Camel Woodcraft Company for the years ending December 31, Year 2 and 1, respectively. Cute Camel Woodcraft Company Balance Sheet For the Year ended December 31

Answer 1

rate positively ..

	Balance sheet
			Year 2	Year 1			Year 2	Year 1
					0
	Assets					Liabilities and equity
	Current asset					Current liabilities
	Cash and equivalents- Note -1		46125	36900		Account payable	0	0
	Account receivable		16875	13500		Accruals	2344	0
	inventories		49500	39600		Notes payable	13281	12500
	Total current assets		112500	90000		Total current liabilities note -3	15625	12500
						Long term debt	46875	37500
	Net fixed asset					Total debt	62500	50000
	Net plant and equipment - Note 2		137500	110000		Common equity :
						Common stock	121875	97500
						Retained earning note -4	65625	52500
						Total common equity	187500	15000
	Total Assets		250000	200000		Total liabilities and equity	250000	200000
	Cash and equivalents- Note -1
	Total current assets		112500
Less	Account receivable		16875
Less	inventories		49500
			46125
	Net plant and equipment - Note 2
	Total Assets		250000
Less :	Total current assets		112500
			137500
	Total current liabilities note -3
	Account payable	0
Add	Accruals	2344
Add	Notes payable	13281
	Total current liabilities	15625
	Retained earning note -4
	Total common equity	187500
Less	Common stock	121875
	Retained earning	65625
Statement #1
	Statement is False :
	Cute Camel's total current asset balance actually increased from $90000 million to $112500 million between year 1 and year 2
Statement #2
	Statement is TRUE :
	Cute Camel's retained earning account increase between year 1 and year 2
Statement #3
	Statement is CORRECT:
	The $3375 increase in account receivable means that the year 1 existing credit customer are not paying off their owned balance
	and new or existing customer are making additional purchase on credit, or that year1 credit customer have repaid their owed
	balance and year 2 credit have exceed year 1 credit sales
Answer last question :
As per GAAP : The company's debt are listed in the order in which they are to be repaid