Balance Sheet Presentation

question 80

Essay

Balance sheet presentation.The following balance sheet was prepared by the bookkeeper for Kraus Company as of December 31, 2014. The following additional information is provided:1. Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted."2. The net accounts receivable balance includes:
(a) accounts receivable-debit balances $60,000;(b) accounts receivable-credit balances $4,000;(c) allowance for doubtful accounts $3,800."3. Inventory does not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.4. Investments include investments in common stock, trading $19,000 and available-for-sale $48,300, and franchises $9,000."5. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
InstructionsPrepare a balance sheet in good form (stockholders' equity details can be omitted.)"

---

Definitions:

Unsystematic Risk

The risk associated with a specific issuer of a security, such as a company's financial condition or management decisions, distinct from market risk.

Unemployment Figures

Unemployment figures represent the statistic that measures the number of people who are actively looking for employment but unable to find work, often expressed as a percentage of the labor force.

Unsystematic Risk

The risk associated with a specific company or industry, also known as non-systematic risk or diversifiable risk.

Quarterly Loss

A financial situation where a company spends more than it earns during a three-month period, leading to a negative net income.