Question

The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 5,900 Accounts receivable (net) 29,000 Inventory 69,000 Property, plant, and equipment (net) 165,000 Accounts payable 48,000 Salaries payable 20,000 Paid-in capital 145,000 The only asset not listed is short-term investments. The only liabilities not listed are $39,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.6:1. Required Determine the following at December 31, 2018: Answer is complete but not entirely correct. Total current assets Short-term investments Retained earnings $ 125,800 5,100 21,800

Answer 1

2021 Balance Sheet

$5,900 Cash

$29,000 Accounts Receivable

$6,500 short-term investments

$69,000 Inventory

$110,400 TOTAL CURRENT ASSETS

$ 165,000 Property, plant, and equipment (net)

$165,000 TOTAL NON CURRENT ASSETS

$275,400 TOTAL ASSETS

$48,000 Accounts Payable

$1,000 Interest Payable

$20,000 Salaries Payable

$69,000 TOTAL CURRENT LIABILITIES

$39,000 Long Term Notes Payable

$39,000 TOTAL NON CURRENT LIABILITIES

$108,000 TOTAL LIABILITIES

$145,000 Paid in Capital

$22,400 Retained Earnings

$167,400 TOTAL EQUITY

$275,400 TOTAL EQUITY + LIABILITIES

Step-by-step explanation:

To complete the Total Current Assets is necessary to find the Short Term Investments, which is possible to know because the current ratio must be 1,6.

With this information it's possible to know that the total current Asssets are $110,400, and the Short Term Investments are $6,500.

To complete the Balance Sheet we need to know the total Retained Earnings that equilibrate the Accounting equation, that is $22,400.