Constructing Company X Balance Sheet as of 31.12.20

What is the balance sheet for Company X as of 31.12.20?

How can we organize the given data into assets, liabilities, and equity?

Company X Balance Sheet as of 31.12.20

The balance sheet for Company X as of 31.12.20 is as follows:

Explanation:

To construct a balance sheet for Company X as of 31.12.20, we need to organize the given information into three main sections: assets, liabilities, and equity.

Assets:

  • Inventory: $150,000
  • Cash: $80,000
  • Accounts Receivables: $55,000
  • Property, Plant, Equipment: $75,000

Liabilities:

  • Long-term loans: $175,000
  • Short-term loans: $30,000
  • Accounts Payables: $45,000
  • Interest expense: $5,000

Equity:

To calculate the equity, we subtract the total liabilities from the total assets:

Total Assets = Inventory + Cash + Accounts Receivables + Property, Plant, Equipment

Total Liabilities = Long-term loans + Short-term loans + Accounts Payables + Interest expense

Equity = Total Assets - Total Liabilities

Now, let's calculate the values:

Total Assets = $150,000 + $80,000 + $55,000 + $75,000 = $360,000

Total Liabilities = $175,000 + $30,000 + $45,000 + $5,000 = $255,000

Equity = $360,000 - $255,000 = $105,000

Therefore, the balance sheet for Company X as of 31.12.20 is as follows:

  • Assets:
  • Inventory: $150,000
  • Cash: $80,000
  • Accounts Receivables: $55,000
  • Property, Plant, Equipment: $75,000
  • Liabilities:
  • Long-term loans: $175,000
  • Short-term loans: $30,000
  • Accounts Payables: $45,000
  • Interest expense: $5,000
  • Equity: $105,000
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