Nickel Industries Reported the Following Amounts on Its Balance Sheet

question 59

Essay

Nickel Industries reported the following amounts on its balance sheet on December 31, 2011:
$\begin{array}{|l|l|}\hline \text { Cash } & \$ 180,000 \\\hline \text { Notes payable } & 100,000 \\\hline \text { Inventory } & 325,000 \\\hline \text { Contributed Capital } & 750,000 \\\hline \text { Net Property, Plant \& Equipment } & 600,000 \\\hline \text { Accounts Receivable } & 30,000 \\\hline \text { Accounts Payable } & 75,000 \\\hline \text { RetainedEarnings } & ? \\\hline &\end{array}$
Required:
1. What is the amount of Nickel's total assets at the end of 2011?
2. Identify the items listed above that are liabilities.
3. What is the amount of Nickel's retained earnings at the end of 2011?
4. Prepare a balance sheet for Nickel Industries using U.S. GAAP as of December 31, 2011.
5. Nickel Industries wishes to purchase merchandise from your company on account. The amount of the purchases would probably be about $11,000 per month, and the terms would require Nickel to make payment in full within 30 days. Would you recommend that your company grant credit to Nickel under these terms? Explain the reasoning for your response.

Identify the impact of environmental factors, including father's habits and maternal anxiety, on pregnancy outcomes.

Understand the importance and methods of prenatal care education.

Recognize the roles and practices of continuous support persons during childbirth, such as doulas and midwives.

Identify cultural differences and trends in childbirth practices.

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Definitions:

Holding Cost

The expenses incurred to store and maintain inventory over a period, including storage, insurance, taxes, and depreciation.

Lot Size

The quantity of a particular product that is produced or purchased at one time, influencing inventory levels and production planning.

Kanban Systems

A method for managing work and inventory with visual signals to indicate when new work should start or when inventory should be replenished.

Safety Stock

Inventory kept on hand to protect against stockouts caused by variations in supply and demand.