Certainly! Below is the detailed step-by-step solution for the given balance sheet.
1. Cash:
- Cash is listed under assets and has a value of [tex]$30,000.
2. Marketable Securities:
- Marketable securities are also an asset and the value is $[/tex]25,000.
3. Accounts Receivable:
- Accounts receivable represent the amount owed by customers and the value here is [tex]$200,000.
4. Total Current Assets:
- Total current assets represent the sum of all current assets.
- The value of total current assets is $[/tex]255,000.
5. Net Fixed Assets:
- These are long-term investments such as property, plant, and equipment, and the value here is [tex]$1,245,000.
6. Total Assets:
- Total assets are the sum of all assets the company owns.
- The value of total assets is $[/tex]1,500,000.
7. Accounts Payable:
- Accounts payable is a liability representing money owed by the company to suppliers, valued at [tex]$120,000.
8. Notes Payable:
- Notes payable are short-term loans or obligations to pay a specific amount to creditors, valued at $[/tex]19,375.
9. Accruals:
- These are expenses that have been incurred but not yet paid, with a value of [tex]$20,000.
10. Total Current Liabilities:
- Total current liabilities represent all short-term obligations.
- The value of total current liabilities is $[/tex]159,375.
11. Long-Term Debt:
- This is a liability representing the obligations due after one year, and the value is [tex]$740,625.
12. Total Liabilities and Stockholder's Equity:
- This is the total of all liabilities and equity, ensuring it matches the total assets.
- The value is $[/tex]1,500,000.
By organizing these values into the balance sheet format provided, we can verify that the total assets are indeed equal to the total liabilities and stockholder's equity, maintaining the accounting equation:
[tex]\[ \text{Total Assets} = \text{Total Liabilities and Stockholder's Equity} \][/tex]
This completes the step-by-step breakdown of the given balance sheet.
