Problem 9-27 (continued)
6. Balance sheet:
Nordic Company
Balance Sheet
June 30
Assets
Current assets:
Cash (Part 4) ………………………………………………………..
$ 8,400
Accounts receivable (80% × $90,000) ………………………..
72,000
Inventory (Part 2) ………………………………………………….
9,000
Total current assets ………………………………………………….
89,400
Buildings and equipment, net
($214,100 + $14,500 – $6,000) ………………………………..
222,600
Total assets ..…………………………………………………………..
$312,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable (Part 2: 50% × $46,800) ..
$ 23,400
Stockholders’ equity:
Capital stock ………………………………………..
$190,000
Retained earnings* ……………………………….
98,600
288,600
Total liabilities and equity ………………………….
$312,000
*
Retained earnings, beginning ……………….
$ 75,400
Add net income …………………………………
26,700
Total……………………………………………….
102,100
Less dividends ………………………………….
3,500
Retained earnings, ending …………………..
$ 98,600
Case 9-29 (continued)
4.
Cravat Sales Company
Budgeted Balance Sheet
June 30
Assets
Cash (Part 2) ………………………………..………………..
$ 10,730
Accounts receivable (see below) ………………………….
450,000
Inventory (36,000 ties @ $5 per tie) …………………….
180,000
Unexpired insurance ($14,400 – $3,600) ………………
10,800
Fixed assets, net of depreciation
($172,700 + $25,000 – $4,500) ….…………………….
193,200
Total assets ………………………….…………………………
$844,730
Liabilities and Stockholders’ Equity
Accounts payable, purchases (50% × $210,000.) ……
$105,000
Dividends payable ……………….…………………………..
12,000
Loans payable, bank ($127,000 – $16,000) ……………
111,000
Capital stock, no par …………………………………………
300,000
Retained earnings (see below) …………………………...
316,730
Total liabilities and equity …………………………………..
$844,730
Accounts receivable at June 30:
25% × May sales of $360,000 …………….
$ 90,000
75% × June sales of $480,000 ..………….
360,000
Total …..…………………………………………
$450,000
Retained earnings at June 30:
Balance, March 31 …………………………...
$176,850
Add net income (Part 3) …………………….
151,880
Total …..…………………………………………
328,730
Less dividends declared ……………………..
12,000
Balance, June 30 ……………………………..
$316,730