Question

Fev and Company has a projected balance sheet that includes the following accounts. Cash $ ? Marketable securities 228,000 Accounts receivable 860,000 Inventory 490,000 Non-current assets, net 2,030,000 Current liabilities 486,000 Total liabilities 1,570,000 Total equity 2,382,000 What is the projected cash balance? Select one: A. $-0- B. $ 566,000 C. $ 344,000 D. $1,914,000 E. None of the above

Answer 1

Answer:

C. $ 344,000

Explanation:

In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

which equals to

Total assets = $1,570,000 + $2,382,000

                    = $3,952,000

And, the total assets equal to

Total assets = Cash + Marketable securities + Accounts receivable + Inventory + Non-current assets

$3,952,000 = Cash + $228,000 + $860,000 + $490,000 + $2,030,000

$3,952,000 = Cash + $3,608,000

So, the cash would be

= $344,000