Busi 530 Corporate Finance McGraw Hill Connect Home Work 2

Construct a balance sheet for Sophie’s Sofas given the following data. (Be sure to list the assets and liabilities in order of their liquidity.) Cash balances = $ 12,500 Inventory of sofas = $ 225,000 Store and property = $ 125,000 Accounts receivable = $ 24,500 Accounts payable = $ 19,500 Long-term debt = $ 195,000 BALANCE SHEET OF SOPHIE’S SOFAS Assets Liabilities & Shareholders’ Equity Cash $ 12,500 Accounts payable $ 19,500 Accounts receivable 24,500 Long-term debt 195,000 Inventory 225,000 Shareholders’ equity 172,500 Store & property 125,000 Total assets $ 387,000 Total liabilities & Shareholders’ equity $ 387,000