Reference no: EM131802032

Question - How does credit impact this balance sheet? Does credit influence change in cash? And if there is only 12,500 in cash and 48,000 is spent than why wouldn't the cash be a negative? Am I missing something in the terminology?

Acme Company Balance Sheet As of January 5, 2017 (amounts in thousands)
Cash	12,500	Accounts Payable	2,400
Accounts Receivable	3,600	Debt	3,700
Inventory	5,200	Other Liabilities	3,000
Property Plant & Equipment	16,700	Total Liabilities	9,100
Other Assets	600	Pain-In Capital	5,600
		Retained Earnings	23,900
		Total Equity	29,500
Total Assets	38,600	Total Liabilities & Equity	38,600

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2017

1. Buy $15,000 worth of manufacturing supplies on credit

2. Purchase equipment for $48,000 in cash

Required - What is the final amount in Cash?