The Accountant Prepared the Following List from the Company's Accounting

question 220

Essay

The accountant prepared the following list from the company's accounting records for the year ended December 31, Year 1:
$\begin{array}{lrlr}\text { Retained Earnings } & \text { ? } & \text { Prepaid Expenses } &\$ 50,000 \\\text { Cash } & \$ 77,000 & \text { Common Stock } & 400,000 \\\text { Accounts Payable } & 50,000 & \text { Accounts Receivable } & 170,000 \\\text { Sales Revenue } & 955,000 & \text { Interest Income } & 50,000 \\\text { Cost of Sales } & 700,000 & \text { Salary Expense } & 140,000 \\\text { Land } & 750,000 & \text { Income Tax Expense } & 20,000 \\\text { Notes Payable } & 450,000 & \text { Selling Expense } & 45,000 \\\text { Inventory } & 200,000 & \text { Salaries Pavable } & 40,000\end{array}$

-Determine the following amounts for Ben & Terry's Ice Cream.
A) total assets at the end of Year 1
B) total liabilities at the end of Year
C) total equity at the end of Year 1

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Definitions:

Financial Ratio

A quantifiable metric comparing two relevant numbers from a company's financial statements, used to assess its financial health.

Inputs and Outcomes

The resources invested in a process (inputs) and the results yielded from that process (outcomes), used to evaluate efficiency and effectiveness.

Logic Model

A systematic and visual representation of how a program or project is intended to work, including its inputs, outputs, and outcomes.

Systems Theory Model

An interdisciplinary theory about the nature of complex systems in nature, society, and science, suggesting components interact within a system to fulfill its purpose.