Question

Assets \begin{tabular}l \hline & Cash & & $9,000 \\ \hline & Accounts Receivable & & $48,000 \\ \hline & Inventory & & $12,600 \\ \hline & Buildings \& equipment (net) & & $214,100 \\ \hline & & Total Assets & $283,700 \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Liabilities \& Owners' Equity Liabilities Accounts Payable Owners' Equity \begin{tabular} \hline Capital Stock & & $190,000 \\ \hline Retained earnings & & $75,400 \\ \hline & Total liab. \& Owners' equity & $283,700 \\ \hline \end{tabular} IMPORTANT instructions! When entering your answers, make sure you format Clue \#4- Merchandise Purchases The company's gross margin percentage is 40% of sales (i.e. cost of goods sold is 60% of sales). Each month's inventory should equal 30% of the following month's cost of goods sold. Beginning inventory has been given to you. What are total required purchases for June? Clue \#5- Cash Disbursements for Purcndses Half of a month's inventory purchases are paid for in the month of purchase and half in the following month. Accounts payable for March 31 have been given to you. What are total expected cash disbursements for purchase of inventory for the month of June?

Answer 1

The assets of the bank include reserves, government bonds, and loans, while the liabilities include deposits and net worth. The net worth of the bank is calculated by subtracting total liabilities from total assets.

Step-by-step explanation:

Assets are the financial resources that a business owns, while liabilities are the financial obligations that a business owes to others.

For this question, the assets of the bank include reserves ($50), government bonds ($70), and loans ($500), totaling $620. The liabilities of the bank include deposits ($400) and net worth ($220), totaling $620.

The net worth of the bank is calculated by subtracting total liabilities from total assets, which in this case is $620 - $400 = $220. Therefore, the bank's net worth is $220.