Original Price: $4.99 Now at: $2.99 Reads (377)

Analyzing The Strength and weakness from Ratios.

The balance sheet for Verne General Partnership appears below. Based solely on this balance sheet, do you see any potential difficulties Verne may have? What strengths does the balance sheet show? Explain. What would you learn from examining the income statement for the year ended 2008?

Verne General Partnership
Balance Sheet
As of December 31, 2008
Assets				Liabilities and Partners’ Equity
				Liabilities
Cash		$30,000		Accounts Payable	$25,000
Accounts Receivable		10,000		Accrued Expenses Payable	20,000
Inventory (FIFO)		20,000		Deferred Income from Sales	60,000
Equipment	150,000			Long-term Note Payable	70,000
Less: Accumulated Depreciation	(20,000)	130,000		Total Liabilities		$175,000
Building	650,000			Partners’ Equity
Less: Accumulated Depreciation	(70,000)	580,000		Verne	$600,000
Land		80,000		Jules	75,000
				Total Partner’s Equity		675,000
Total Assets		$850,000		Total Liabilities and Partners’ Equity		$850,000

Attached file(s)

Solution Attachment

Solution document is in Pdf format