Below Are Partial Balance Sheets for Bancroft Inc

question 47

Essay

Below are partial balance sheets for Bancroft Inc.for three years. Required:
A) Fill in the missing amounts.
B) Are Bancroft's liquidity and risk improving? Support your answer.If you were a shareholder in Bancroft, would you be concerned?

• A) Fill in the missing amounts.
• B) Are Bancroft's liquidity and risk improving? Support your answer.If you were a shareholder in Bancroft, would you be concerned?

---

Definitions:

Fixed Costs

Expenses that do not change with the level of output or production, such as rent, salaries, and insurance premiums.

Break-even Point

The point at which total costs equal total revenues, indicating that a business is neither making a profit nor a loss.

Fixed Costs

Costs that do not change in total with changes in activity level over a relevant range, such as rents, salaries, and insurance premiums.

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in zero profit or loss.