Question

The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 5,900 Accounts receivable (net) 29,000 Inventory 69,000 Property, plant, and equipment (net) 165,000 Accounts payable 48,000 Salaries payable 20,000 Paid-in capital 145,000 The only asset not listed is short-term investments. The only liabilities not listed are $39,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.6:1. Required Determine the following at December 31, 2018: Answer is complete but not entirely correct. Total current assets Short-term investments Retained earnings $ 125,800 5,100 21,800

Answer 1

Answer:

2021 Balance Sheet

$5,900     Cash

$29,000   Accounts Receivable

$6,500      short-term investments

$69,000   Inventory

$110,400   TOTAL CURRENT ASSETS  

$ 165,000  Property, plant, and equipment (net)  

$165,000  TOTAL NON CURRENT ASSETS  

$275,400  TOTAL ASSETS  

$48,000   Accounts Payable  

$1,000       Interest Payable  

$20,000    Salaries Payable  

$69,000   TOTAL CURRENT LIABILITIES  

$39,000   Long Term Notes Payable  

$39,000   TOTAL NON CURRENT LIABILITIES  

$108,000  TOTAL LIABILITIES  

$145,000  Paid in Capital  

$22,400   Retained Earnings  

$167,400  TOTAL EQUITY  

$275,400  TOTAL EQUITY + LIABILITIES  

Explanation:

To complete the Total Current Assets is necessary to find the Short Term Investments, which is possible to know because the current ratio must be 1,6.

With this information it's possible to know that the total current Asssets are $110,400, and the Short Term Investments are $6,500.

To complete the Balance Sheet we need to know the total Retained Earnings that equilibrate the Accounting equation, that is $22,400.