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4 March, 02:05

Construct a balance sheet for Sophie's Sofas given the following data. What is shareholders' equity? Cash balances = $10,000 Inventory of sofas = $200,000 Store and property = $100,000 Accounts receivable = $22,000 Accounts payable = $17,000 Long-term debt = $170,000

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  1. 4 March, 04:47
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    Balance Sheet of Sophie's Sofas for the year ended December 31th 20XX

    Cash 10,000 Account Payable 17,000

    Account Receivable 22,000 Long Term Debt 170,000

    Inventory 200,000 Total Liabilities 187,000

    Current Assets 232,000 Stockholders Equity 145,000

    PPE 100,000

    Total Assets 332,000 Total SE + Liab 332,000

    Explanation:

    We calculate equity using the accounting equation:

    Assets = Liabilities + Equity

    We add all the assets in one column, and the liab in another. Now, once we got these two, we calculate equity by subtracting:

    332,000 - 187,000 = Equity = 145,000
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