Lowell's Country Music Bar Balance Sheet Analysis

Balance Sheet

A balance sheet is an educational, financial tool that summarizes a company’s assets, liabilities, and net worth during a particular time frame. The data provided by the balance sheet informs the organizational leaders of the financial status of the firm. Moreover, the balance sheet displays what the company owns and owes (Edmonds, Tsay, & Olds, 2011). Completing as well as understanding the numbers is equally as critical as the meaning behind the figures. The bookkeeper for Lowell’s Country Music Bar left an incomplete balance sheet. The individual knows the firm has a working capital of $90,000 and its debt to assets ratio is 40%. Upon completing the manual calculations, one will explain the calculation for each answer in support

This number is obtained by adding cash, accounts receivable, inventory prepaid expenses. $21,000 + $42,000 + $64, 500 + $9,000 = $136,500. The answer for letter D is $346,500 total assets. Total assets equal total C.A. + T. F. A. denoting, $136,500 + $210,000. The answer for letter E is $15,000 for accounts payable. The amount is calculated by subtracting total current liabilities – income tax payable-notes payable. ($37,500 -$10,500 - $12,000). Additional, a person can calculate for the letter G. The person knows the debt to assets ratio is 40% since it is given in the problem. The debt to asset ratio equals total debt / total assets. Impling, .40 X $346, 500 = $138,600 in total

An individual knows the current liability is $37,500 and the total debt is $138,600. Therefore, the person would subtract the amount of $138,600 - $37, 500. The answer for letter H is $102,900 for retained earnings. The common stock is $105,000. Consequently the Total Equity is $207,900 - $105, 000. The answer for the letter I is $207, 900 for total stockholders’ equity. One can use the formula I (Total Stockholders Equity) = J ($346,500 Total Liabilities and Stockholder equity) – G ( $138,600 Total Liabilities). The answer for J is $ 346,500 for Total Liabilities and Stockholder’s Equity. The calculation principle used is total assets = ($138,600) total liability + ($207, 900) equity. Concluding the Lowell’s Country Music Bar Balance Statement Sheet balances out in the current assets plus its total liabilities. Below is the calculated Excel Spreadsheet used to acquire values for the letters A-J. Although the data revealed these numbers on the balance sheet. There may always be room for error even when using Excel spreadsheets for calculations (Levy,