Lowell’s Country Music Bar Balance Sheet Working Capital 90,000 Debt to assets ratio 40%

Assets
Current assets Cash $21,000 Accounts receivables $42,000 Inventory (A) $55,500 Prepaid expenses $9,000 Total current assets (B) $127,500
Long-term …show more content…
Working capital $90,000 = current assets $127,500 - current liabilities $37,500 or $90,000 + $37,500 = $127,500 (Edmonds, Tsay, & Olds, 2011). To determine the inventory (A), take the total current assets (B) $127,500 and subtract the prepaid expenses, accounts receivables, and cash (Edmonds, Tsay, & Olds, 2011). The current assets of $127,500 – cash, $21,00 – accounts receivables, $42,000 – prepaid expenses, $9,000 = $55,500 (Edmonds, Tsay, & Olds, 2011). To determine the long-term assets building (C), take the total long-term assets plus accumulated depreciation (Edmonds, Tsay, & Olds, 2011). The long-term assets, $210,000 + the accumulated depreciation $39,000 = (c) the building $249,000 (Edmonds, Tsay, & Olds, 2011). The total assets (D), is determined by adding the total current assets to the total long-term assets (Edmonds, Tsay, & Olds, 2011). The total current assets, $127,500 + total long-term assets, $210,000 = (D) the total assets of $337,500 (Edmonds, Tsay, & Olds,