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-   -   Accounting:( balance sheet) please I need help? (https://www.askmehelpdesk.com/showthread.php?t=747067)

  • May 2, 2013, 03:45 PM
    poul
    Accounting:( balance sheet) please I need help?
    A firm is looking to rent space from my client for $25,000 per month. Based on the information included in the balance sheet, could I counsel my client to rent them space? Why or why not?and what the pros and cons of renting space to this firm.
    Also, what other information I need to counsel my client to find out about the partnership company?
    Please provide other observations you might notice about this firm, merely by reviewing this balance sheet.



    Balance Sheet
    As of May 18, 2006

    Assets

    Current Assets:
    Cash $ 40,000
    Office Supplies 30,000
    Accounts Receivable 150,000
    Note Receivable 40,000

    Total Current Assets $260,000

    Fixed Assets:
    Equipment 70,000
    Land 50,000
    Building 100,000
    Art Collection 600,000

    Total Fixed Assets 820,000

    Intangible Assets:
    Copyright 50,000

    Total Assets: $ 1,130,000

    Liabilities & Owner’s Equity

    Current Liabilities:
    Unpaid Rent $ 25,000
    Accounts Payable 175,000
    Note Payable 100,000
    Total Current Liabilities: $ 300,000

    Long-Term Liabilities:
    Mortgage Payable 115,000

    Total Liabilities $ 415,000

    Owner’s Equity:
    Simon, Capital $375,000
    Lucas, Capital 375,000
    Wonka, Capital (35,000)
    Total Owner’s Equity 715,000

    Total Liabilities & Owner’s Equity $ 1,130,000

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