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The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the companys financial condition and performance.Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet.Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars)Year 2 Year 1 Year 2 Year 1Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $4,612 Accounts payable $0 $0Accounts receivable 2,109 1,688 Accruals 293 0Inventories 6,187 4,950 Notes payable 1,660 1,562Total current assets $14,062 $11,250 Total current liabilities $1,562Net fixed assets: Long-term debt 5,859 4,688Net plant and equipment $13,750 Total debt $7,812 $6,250Common equity: Common stock 15,235 12,188Retained earnings 6,562Total common equity $23,438 $18,750Total assets $31,250 $25,000 Total liabilities and equity $31,250 $25,000Given the information in the preceding balance sheetand assuming that Cold Goose Metal Works Inc. has 50 million shares of common stock outstandingread each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.Statement #1: Cold Gooses pool of relatively liquid assets, which are available to support the companys current and future sales, decreased from Year 1 to Year 2.This statement is , because:Cold Gooses total current liabilities balance decreased by $2,812 million between Year 1 and Year 2Cold Gooses total current asset balance actually increased from $11,250 million to $14,062 million between Year 1 and Year 2Cold Gooses total current liabilities balance increased from $1,688 million to $2,109 million between Year 1 and Year 2Statement #2: In Year 2, Cold Goose Metal Works Inc. was profitable.This statement is , because:The cash and equivalents account increased between Years 1 and 2Cold Gooses retained earnings account increased between the end of Years 1 and 2Cold Gooses total assets increased between Years 1 and 2