Question

Use the starting balance sheet and the list of changes to create an updated balance sheet.Valley TechnologyBalance SheetAs of December 31, 2017(amounts in thousands)Cash 22,000 Liabilities 36,000Other Assets 28,000 Equity 14,000Total Assets 50,000 Total Liabilities & Equity 50,000Valley TechnologyIncome StatementJanuary 1 to March 31, 2018(amounts in thousands)Revenue 7,200Expenses 3,600Net Income 3,600Between January 1 and March 31, 2018:
1. Cash decreases by $200,000
2. Liabilities decrease by $100,000
3. Paid-In Capital does not change
4. Dividends paid of $400,000
What is the value for Other Assets on March 31, 2018?

Answer 1

Answer:

$31,300,000

Explanation:

cash account balance = 22,000,000 - 200,000 (cash decrease) = 21,800,000

total liabilities balance = 36,000,000 - 100,000 (decrease in liabilities) = 35,900,000

equity balance = 14,000,000 - 400,000 (dividends) + 3,600,000 (net income) = 17,200,000

total assets = 35,900,000 + 17,200,000 = 53,100,000

other assets = total assets - cash = 53,100,000 - 21,800,000 = 31,300,000