Question

Use the starting balance sheet, income statement, and the list of changes to answer the question.

Valley Technology
Balance Sheet
As of December 31, 2017
(amounts in thousands)
Cash 22,000 Liabilities 36,000
Other Assets 28,000 Equity 14,000
Total Assets 50,000 Total Liabilities & Equity 50,000
Valley Technology
Income Statement
January 1 to March 31, 2018
(amounts in thousands)
Revenue 7,200
Expenses 3,600
Net Income 3,600
Between January 1 and March 31, 2018:

1. Cash decreases by $200,000
2. Liabilities decrease by $100,000
3. Paid-In Capital does not change
4. Dividends paid of $400,000

What is the value for Other Assets on March 31, 2018?

Please specify your answer in the same units as the financial statements.

Answer 1

Valley Technology

Other Assets (amount in thousands) = $31,300

Step-by-step explanation:

a) Data and Calculations:

Valley Technology

Balance Sheet

As of December 31, 2017

(amounts in thousands)

Cash $22,000 Liabilities $36,000

Other Assets 28,000 Equity 14,000

Total Assets $50,000 Total Liabilities & Equity $50,000

Valley Technology

Income Statement

January 1 to March 31, 2018

(amounts in thousands)

Revenue 7,200

Expenses 3,600

Net Income 3,600

Cash

Balance sheet 22,000

Decrease 200

Balance 21,800

Liabilities:

Balance sheet 36,000

Decrease 100

Balance 35,900

Equity:

Balance sheet 14,000

Net Income 3,600

Dividends paid 400

Balance 17,200

New Balance Sheet, March 31, 2018:

Cash 21,800 Liabilities 35,900

Other assets 31,300 Equity 17,200

Total assets 53,100 Total Liabilities + Equity 53,100