Statement of Financial Position Presentation
the Following Statement of Financial $\quad$

question 56

Essay

Statement of financial position presentation
The following statement of financial position was prepared by the bookkeeper for Badger Corp. at December 31, 2020.

The following additional information is provided:
1. "Cash" includes prepaid insurance of $9,400; as well, a bank overdraft of $1,500 has been deducted.
2. The net accounts receivable balance includes:
$\quad$$\quad$ (a) accounts receivable—debit balances $62,000;
$\quad$$\quad$ (b) accounts receivable—credit balances $5,000;
$\quad$$\quad$ (c) allowance for doubtful accounts $4,800.
3. Inventories do not include goods costing $5,000 shipped out on consignment. Receivables of $5,000 were recorded on these goods.
4. Investments include investments in common shares, trading $24,000 and long-term $43,300, and franchises $9,000.
5. Equipment costing $8,000 with accumulated depreciation $6,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions
Prepare a statement of financial position in good form (shareholders' equity details can be omitted.)

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Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results.

Significance Level

The threshold of probability below which a null hypothesis is rejected in statistical tests, representing the risk of a Type I error.

Confidence Level

The degree of certainty or probability that a parameter lies within a specified range of values.

Estimating Procedure

A systematic method used to predict or calculate the likely amount, size, cost, or duration of something with incomplete information.