Bricklin Company Has $600 in Its Checking Account

question 8

Essay

Bricklin Company has $600 in its checking account. A customer owes Bricklin $1,000. The company has store equipment that cost $1,500 and a truck that cost $5,000. Bricklin Company owes the bank $3,500 on the truck loan of which one payment of $700 is due in one week, and owes $4,000 to creditors for its monthly operating expenses, including rent, all of which is due in the next 30 days.
A. List Bricklin Company's assets and the dollar amount of each.
B. List Bricklin Company's liabilities and the dollar amount of each.
C. Is Bricklin Company solvent? Explain.

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Definitions:

Voluntary Control

The ability to consciously regulate one's own thoughts, feelings, and actions.

Motor Development

The progression of muscle control, movement skills, and physical coordination in a person, often focusing on infants and young children.

Cephalocaudal

A pattern of growth in which development begins at the head and progresses downwards towards the feet.

Proximodistal

Describes a pattern of physical and psychological growth and development where development starts at the central part of the body and moves towards the outer parts.