question archive Use the starting balance sheet, income statement, and the list of changes to answer the question
Use the starting balance sheet, income statement, and the list of changes to answer the question
Subject:AccountingPrice:2.87 Bought7
Use the starting balance sheet, income statement, and the list of changes to answer the question.
| Ruston Company Balance Sheet As of December 31, 2017 (amounts in thousands) |
|||
|---|---|---|---|
| Cash | 21,000 | Liabilities | 25,000 |
| Other Assets | 31,000 | Equity | 27,000 |
| Total Assets | 52,000 | Total Liabilities & Equity | 52,000 |
| Ruston Company Income Statement January 1 to March 31, 2018 (amounts in thousands) |
|
|---|---|
| Revenue | 3,100 |
| Expenses | 4,400 |
| Net Income | -1,300 |
Between January 1 and March 31, 2018:
1. Other Assets decrease by $200,000
2. Liabilities increase by $300,000
3. Paid-In Capital does not change
4. Dividends paid of $100,000
What is the value for Cash on March 31, 2018?
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Answer:
Figures as on Mar 31, 2018
Liabilities = $25000 + 300 = $25,300 i.e. Beginning Balance + Increase
Equity = $27000 - 1300 - 100 = $25,600 i.e. Beginning Balance + Net Income (Loss) - Dividends
Other Assets = $31000 - 200 = $30,800 i.e. Beginning Balance - Decrease
Cash will be the balancing figure
Cash on Mar 31, 2018 = Liabilities + Equity - Other Assets
= $25300 + 25600 - 30800 = $20,100
