Answer:
2016 Balance Sheet
$697,000 TOTAL CURRENT ASSETS
$2,064,000 TOTAL NONCURRENT ASSETS
$2,761,000 TOTAL ASSETS
$303,000 TOTAL CURRENT LIABILITIES
$312,000 TOTAL NONCURRENT LIABILITIES
$615,000 TOTAL LIABILITIES
$2,146,000 TOTAL EQUITY
$2,761,000 TOTAL EQUITY + LIABILITIES
Explanation:
2016 Balance Sheet
$67,000 Cash
$132,000 Marketable Securities
$50,000 Treasury Bills
$115,000 Accounts Receivable
$215,000 Inventory
$16,000 Prepaid Expenses
$50,000 Note Receivable
$12,000 Interest Receivable
$40,000 Loans to Employees
$697,000 TOTAL CURRENT ASSETS
$280,000 Land
$637,000 Machinery and Equipment
-$210,000 Accum Depreciation
$1550,000 Buildings
-$620,000 Accum Depreciation
$152,000 Patents
$40,000 Franchise
$200,000 Note Receivable
$35,000 Marketable Securities Long Term
$2,064,000 TOTAL NONCURRENT ASSETS
$2,761,000 TOTAL ASSETS
$189,000 Accounts Payable
$40,000 Taxes Payable
$48,000 Deferred Revenue
$16,000 Interest Payable
$10,000 Dividends Payable
$303,000 TOTAL CURRENT LIABILITIES
$12,000 Deferred Revenue
$300,000 Notes Payable
$312,000 TOTAL NONCURRENT LIABILITIES
$615,000 TOTAL LIABILITIES
$2,000,000 Common Stock
$146,000 Retained Earnings
$2,146,000 TOTAL EQUITY
$2,761,000 TOTAL EQUITY + LIABILITIES
- Account of Current Assets , the criteria is to have a liquidity speed less than one year
Cash
Marketable Securities
Treasury Bills
Accounts Receivable
Inventory
Prepaid Expenses
Note Receivable
Interest Receivable
Loans to Employees
- Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets
Land
Machinery and Equipment
Accum Depreciation
Buildings
Accum Depreciation
Patents
Franchise
Note Receivable
Marketable Securities Long Term
- Account of Current Liabilities , the criteria is to have a liquidity speed less of one year
Accounts Payable
Taxes Payable
Deferred Revenue
Interest Payable
Dividends Payable
- Account of Non Current Liabilities, the criteria is to have a liquidity speed more than one year and are known as long term financing
Deferred Revenue
Notes Payable
Common Stock
Retained Earnings
Liquidity is defined as the speed of the assets that will be converted into cash, assets that take less days to buy or sell are more liquid than others.
Cash is the most liquid asset, then Accounts Receivable and Inventories for the end, in the middle there are different assets such as capital investments.
Prepaid expenses are not liquid because these accounts do not mean that the company can get cash unless the company has rights to something.
