Reference no: EM132626176
Question 1: Polly's Pet Products. Each of these statements has blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. Include in this narrative an explanation of:
- the financial statement being completed;
- the account being valued;
- its relationship to the other financial data.
For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and explain that you can derive the AP value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a conclusion about the company's performance based on the completed statements.
Refer to the income statement, balance sheet, and statement of cash flows of Polly's Pet Products.
Polly's Pet Products
Balance Sheet as of December 31, 2018
ASSETS
CURRENT ASSETS
Cash
Accounts receivable 50,000
Other assets 25,000
Total current assets
LONG TERM ASSETS
Fixed Assets 75,000
TOTAL ASSETS
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 75,000
Accrued expenses
Income tax payable 5,000
Current portion of notes payable 12,000
Deferred income taxes 1,500
Total current liabilities 123,500
LONG TERM LIABILITIES
Notes payable (long term)
TOTAL LIABILITIES 161,500
STOCKHOLDERS' EQUITY
Common stock 5,000
Additional paid-in capital 15,000
Retained Earnings
Total stockholders' equity
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY