Question

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. 5 nts Assets 2017 2018 eBook JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 13,275 Accounts payable $ 52,560 29,925 Notes payable 19,260 82,575 eferences Current assets Cash Accounts receivable Inventory $ 60,750 $ 10,620 21,420 24,075 67,860 Total $ 99,900 $ 125,775 Total $ 71,820 $ 84,825 Long-term debt $ 36,000 $ 27,000 Owners' equity Common stock and paid in surplus Retained earnings $ 45,000 $ 45,000 293,175 207180 Net plant and equipment $ 260,100 $324,225 Total $ 252,180 $ 338,175 Total assets $360,000 $450,000 Total liabilities and owners' equity $360,000 $450,000

Answer 1

Solution: Increase in assets or decreases in liabilities are uses and decrease in assets or increase in liabilities are sources. 2017 sources/Uses 2018 Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets 10620 2655 21420 8505 67860 14715 9990025875 Use 13275 Use 29925 Use 82575 Use 125775 260100 64125 360000 90000 Use 324225 Use 450000 52560 8190 19260 4815 71820 13005 36000 -9000 Source 60750 Source 24075 Source 84825 Use 27000 Liabilities and Owners' Equity Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity 45000 0 207180 85995 252180 85995 360000 90000 Source 45000 Source 293175 Source 338175 Source 450000