BWs Determination of Sources and uses Liabilities and Equity 19X3 19X2+-S/U Notes Payable $290|$295$5U Acct Payable 94 94 Accrued Taxes 16 16 Other Accrued liab 100 100 Current Liab. S 500 S 505 NA Long-Term Debt 530 45377s Shareholders?Equity Com. Stock($1 par) 200 200 Add pd in capital 729 729 Retained earnings 210 15753S Total Equity 5 1,139 s1086 NA 71 Total Liab/Equity 2,169$ 2044
7-11 BWs’ Determination of Sources and Uses $ 295 $ 5 U 94 -- 16 -- 100 -- $ 505 N/A 453 77 S 200 -- 729 -- 157 53 S $ 1086 N/A $ 2,044 Notes Payable $ 290 Acct. Payable 94 Accrued Taxes 16 Other Accrued Liab. 100 Current Liab. $ 500 Long-Term Debt 530 Shareholders?Equity Com. Stock ($1 par) 200 Add Pd in Capital 729 Retained Earnings 210 Total Equity $ 1,139 Total Liab/Equity $ 2,169 Liabilities and Equity 19X3 19X2 +/- S/U
Basic sources and Uses statement SOURCES Increase, Retained Earnings $53 Decrease Accounts Receivable 16 Increase, Long-Term Debt 77 Decrease, Cash+ Cash Equivalents 10 USES 156 Increase, nventories $80 Increase Accrued Taxes Decrease, Notes Payable 5 Increase, Net Fixed Assets 70 156 7-12
7-12 Basic Sources and Uses Statement USES $156 Increase, Inventories $80 Increase, Accrued Taxes 1 Decrease, Notes Payable 5 Increase, Net Fixed Assets 70 $156 SOURCES Increase, Retained Earnings $ 53 Decrease, Accounts Receivable 16 Increase, Long-Term Debt 77 Decrease, Cash + Cash Equivalents 10
Adjusting the Basic Sources and Uses Statement The following three slides are Basket Wonders Balance sheet and Income Statement that was discussed in Chapter 6. This information willl be needed to adjust the basic Sources and Uses Statement 7-13
7-13 Adjusting the Basic Sources and Uses Statement The following three slides are Basket Wonders’ Balance Sheet and Income Statement that was discussed in Chapter 6. This information will be needed to adjust the basic Sources and Uses Statement
Basket wonders Balance Sheet (Asset Side) Basket Wonders Balance Sheet (thousands) Dec 31, 19X3a Cash and C,E 90 a. How the firm stands on Acct rec.c 394 a specific date Inventories 696 b What BW owned Prepaid Exp 5 c. Amounts owed by Accum Tax Prepay 10 customers Current Assets$1, 195 d. Future expense items Fixed Assets(@Cost)' 1030 already paid. Less: AcC. Depr. 9 329)e. Cash/likely convertible Net Fix Assets s 701 to cash within 1 year Investment. LT 50f. Orginal amount paid. Other Assets. LT 223 g. AcC deductions for 7-14 Total Assets b $2,169 wear and tear
7-14 Basket Wonders’ Balance Sheet (Asset Side) a. How the firm stands on a specific date. b. What BW owned. c. Amounts owed by customers. d. Future expense items already paid. e. Cash/likely convertible to cash within 1 year. f. Original amount paid. g. Acc. deductions for wear and tear. Cash and C.E. $ 90 Acct. Rec.c 394 Inventories 696 Prepaid Exp d 5 Accum Tax Prepay 10 Current Assetse $1,195 Fixed Assets (@Cost)f 1030 Less: Acc. Depr. g (329) Net Fix. Assets $ 701 Investment, LT 50 Other Assets, LT 223 Total Assets b $2,169 Basket Wonders Balance Sheet (thousands) Dec. 31, 19X3a
Basket wonders Balance Sheet (Liability Side Basket Wonders Balance Sheet ( thousands) Dec 31, 19X3 Notes Payable s 290 a Note, Assets Acct Payable c 94 Liabilities Equity. Accrued taxes d 16 b. What BW owed and Other Accrued Liab. d-100 ownership position Current Liab. e 500 c. Owed to suppliers for Long-Term Debt f 530 goods and services. Shareholders'Equity d. Unpaid wages, Com. Stock($1 par) 200 salaries,etc Add pd in capital 9 729 e Debts payable <1 year. Retained Earnings h 210f. Debts payable >1 year. Total Equity $1,139 g. Original investment. 7-15 Total Liab/Equitya, b $2,169 Ih. Earnings reinvested
7-15 Basket Wonders’ Balance Sheet (Liability Side) a. Note, Assets = Liabilities + Equity. b. What BW owed and ownership position. c. Owed to suppliers for goods and services. d. Unpaid wages, salaries, etc. e. Debts payable < 1 year. f. Debts payable > 1 year. g. Original investment. h. Earnings reinvested. Notes Payable $ 290 Acct. Payablec 94 Accrued Taxes d 16 Other Accrued Liab. d 100 Current Liab. e $ 500 Long-Term Debt f 530 Shareholders’ Equity Com. Stock ($1 par) g 200 Add Pd in Capital g 729 Retained Earnings h 210 Total Equity $1,139 Total Liab/Equitya,b $2,169 Basket Wonders Balance Sheet (thousands) Dec. 31, 19X3