Reference no: EM132204129

Assignment - Below find a balance sheet for VWV Company.

VWV Company Balance Sheet  December 31, 20XX
Assets			Liabilities
Current assets			Current liabilities
	Cash	$72,000		Accounts payable	$12,000
	Accounts receivable	18,000		Interest payable	12,000
	Interest receivable	1,000
	Inventory	60,000
Total current assets		$151,000	Total current liabilities		$24,000
Long-term assets			Long-term liabilities
	Equipment (net of depreciation)	$128,000		Note payable	100,000
Total long-term assets		$128,000	Total long-term liabilities		$100,000
			Equity
				Common stock	10,000
				Paid-in capital	50,000
				Retained earnings	95,000
			Total equity		$155,000
Total assets		279,000	Total liabilities and equity		$279,000

Required: Recreate the balance sheet in an Excel spreadsheet. Use cell formulae to add and subtract numbers. Add a column next to the balance sheet for answers to the questions listed below.

Questions:

• Is accounts payable larger or smaller than accounts receivable? What is the difference? What do the numbers indicate? Explain.
• What does "equipment net of depreciation" mean?
• Are payables short-term or long-term?
• Determine total liabilities.
• Determine net short-term assets or liabilities.
• Determine the total amount owed by VWV at the end of the year.
• How do we know that the above is a corporate (not a sole proprietor) balance sheet?

Submit the Excel spreadsheet. All information should be part of the spreadsheet. Written comments should be brief and refer to the balance sheet. Both content and presentation matter.