Prepare a December 31 Balance Sheet in Proper Form for Smokey

question 205

Essay

Prepare a December 31 balance sheet in proper form for Smokey River Supplies, Inc. from the following list of the accounts: $\begin{array}{llcc} \text { Cash...............................} &\$10,000\\\\ \text {Accounts receivable......... } &8,000\\ \text { Supplies.......................... } &12,000\\ \text { Equipment...................... } &35,000\\ \text {Land................................ } &18,000\\ \text { Accounts payable............ } &13,000\\ \text {Notes payable................... } &41,000\\ \text { Stockholders' equity......... } &29,000\\\end{array}$

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or output over the short term, such as rent or salaries.

Variable Cost

Expenses that change in proportion to the amount of production or output levels.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Fixed Costs

Expenses that do not change with the amount of goods or services produced, such as rent, salaries, or insurance.