HW 1 Fundamentals of corporate finance
Score: 90
1.
out of 90 points (100%)
award:
10 out of
10.00
points
Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $143,000; patents and copyrights = $630,000; accounts payable = $220,500; accounts receivable = $115,000; tangible net fixed assets = $1,660,000; inventory = $301,000; notes payable = $120,000; accumulated retained earnings = $1,246,000; long-term debt = $861,000. (Be sure to list the accounts in order of their liquidity.)
CORNELL COP.
Balance Sheet
Assets
Cash
Accounts receivable
Inventory
$ 143,000
115,000
301,000
Current assets
Tangible net fixed assets
Intangible net fixed assets
$ 559,000
1,660,000
630,000
Total assets
$ 2,849,000
Liabilities
Accounts payable
Notes payable
$ 220,500
120,000
Current liabilities
Long-term debt
$ 340,500
861,000
Total liabilities
Common stock
Accumulated retained earnings
$ 1,201,500
401,500
1,246,000
Total liabilities & owners' equity
$ 2,849,000
Learning Objective: 02-01 The difference between accounting value (or “book” value) and market value.
Worksheet
Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $143,000; patents and copyrights = $630,000; accounts payable = $220,500; accounts receivable = $115,000; tangible net fixed assets = $1,660,000; inventory = $301,000; notes payable = $120,000; accumulated retained earnings = $1,246,000; long-term debt = $861,000. (Be sure to list the accounts in order of their liquidity.)
CORNELL COP.
Balance Sheet
Assets
Cash
Accounts receivable
Inventory
$
143,000 ± 2%
115,000 ± 2%
301,000 ± 2%
Current assets
Tangible net fixed assets
Intangible net fixed assets
$
559,000 ± 2%
1,660,000 ± 2%
630,000 ± 2%
Total assets
2,849,000 ± 2%
$
Liabilities
Accounts payable
Notes payable
$
220,500 ± 2%
120,000 ± 2%
Current liabilities
Long-term debt
$
340,500 ± 2%
861,000 ± 2%
Total liabilities
Common stock
Accumulated retained earnings
$
1,201,500 ± 2%
401,500 ± 2%
1.
out of 90 points (100%)
award:
10 out of
10.00
points
Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $143,000; patents and copyrights = $630,000; accounts payable = $220,500; accounts receivable = $115,000; tangible net fixed assets = $1,660,000; inventory = $301,000; notes payable = $120,000; accumulated retained earnings = $1,246,000; long-term debt = $861,000. (Be sure to list the accounts in order of their liquidity.)
CORNELL COP.
Balance Sheet
Assets
Cash
Accounts receivable
Inventory
$ 143,000
115,000
301,000
Current assets
Tangible net fixed assets
Intangible net fixed assets
$ 559,000
1,660,000
630,000
Total assets
$ 2,849,000
Liabilities
Accounts payable
Notes payable
$ 220,500
120,000
Current liabilities
Long-term debt
$ 340,500
861,000
Total liabilities
Common stock
Accumulated retained earnings
$ 1,201,500
401,500
1,246,000
Total liabilities & owners' equity
$ 2,849,000
Learning Objective: 02-01 The difference between accounting value (or “book” value) and market value.
Worksheet
Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $143,000; patents and copyrights = $630,000; accounts payable = $220,500; accounts receivable = $115,000; tangible net fixed assets = $1,660,000; inventory = $301,000; notes payable = $120,000; accumulated retained earnings = $1,246,000; long-term debt = $861,000. (Be sure to list the accounts in order of their liquidity.)
CORNELL COP.
Balance Sheet
Assets
Cash
Accounts receivable
Inventory
$
143,000 ± 2%
115,000 ± 2%
301,000 ± 2%
Current assets
Tangible net fixed assets
Intangible net fixed assets
$
559,000 ± 2%
1,660,000 ± 2%
630,000 ± 2%
Total assets
2,849,000 ± 2%
$
Liabilities
Accounts payable
Notes payable
$
220,500 ± 2%
120,000 ± 2%
Current liabilities
Long-term debt
$
340,500 ± 2%
861,000 ± 2%
Total liabilities
Common stock
Accumulated retained earnings
$
1,201,500 ± 2%
401,500 ± 2%