Question

The following financial information is for Cullumber Company. Cullumber Company Balance Sheets December 31 Assets 2020 Cash $ 70,000 Debt investments (short-term) 53,000 Accounts receivable 108,000 Inventory 229,000 Prepaid expenses 30,000 Land 130,000 Building and equipment (net) 264,000 Total assets $884,000 Liabilities and Stockholders' Equity Notes payable $172,000 Accounts payable 65,000 Accrued liabilities 41,000 Bonds payable, due 2023 250,000 Common stock, $10 par 202,000 Retained earnings 154,000 Total liabilities and stockholders' equity $884,000 2019 $ 64,000 39,000 90,000 162,000 25,000 130,000 185,000 $695,000 $102,000 51,000 41,000 172,000 202,000 127,000 $695,000 Cullumber Company Income Statements For the Years Ended December 31 2020 2019 Sales revenue $890,000 $786,000 Cost of goods sold 641,000 575,000 Gross profit 249,000 211,000 Operating expenses 194,000 159,000 Net income $ 55,000 $ 52,000 Additional information: 2. 3. 4. 5. Inventory at the beginning of 2019 was $116,000. Accounts receivable (net) at the beginning of 2019 were $90,000. Total assets at the beginning of 2019 were $642,000. No common stock transactions occurred during 2019 or 2020. All sales were on account.

Answer 1

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, listing its assets, liabilities, and shareholders' equity. The assets of Cullumber Company include cash, debt investments, accounts receivable, inventory, prepaid expenses, land, and building and equipment. The liabilities and stockholders' equity consist of notes payable, accounts payable, accrued liabilities, bonds payable, common stock, and retained earnings.

Step-by-step explanation:

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and shareholders' equity. Assets are items of value that a company owns, such as cash, investments, accounts receivable, and inventory. Liabilities are the company's debts and obligations to others, such as accounts payable and loans. Shareholders' equity represents the owners' stake in the company.

In the case of Cullumber Company, the assets include cash, debt investments, accounts receivable, inventory, prepaid expenses, land, and building and equipment. The liabilities and stockholders' equity include notes payable, accounts payable, accrued liabilities, bonds payable, common stock, and retained earnings.