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  3. required determine the companys working capital current assets minus current...

Question: required determine the companys working capital current assets minus current...

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Required: Determine the companys working capital (current assets minus current liabilities) at December 31, 2018. E 3-7 Balance sHeet The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In review- ing the statement you notice several errors. ion; LOS GATOS CORPORATION Balance Sheet At December 31, 2018 Assets errors LO3-2, LO3-3 Cash Accounts receivable nventories Machinery (net) Franchise (net) $ 40,000 80,000 55,000 120,000 30,000 $325,000 Total assets Liabilities and Shareholders Equity Accounts payable Allowance for uncollectible accounts Note payable Bonds payable Shareholders equity $50,00o 5,000 55,000 110,000 105,000 $325,000 Total liabilities and shareholders equity Additional Information: 1. Cash includes a $20,000 restricted amount to be used for repayment of the bonds payable in 2022. 2. The cost of the machinery is $190,000. 3. Accounts receivable includes a $20,000 note receivable from a customer due in 2021
CHAPTER 3 The Balance Sheet and Financial Disclosures 143 4. The note payable includes acrued interest of $5,.000. Principal and interest are both due on February 1, 2019 5. The company began operations in 2013. Income less dividends since nception of the company totals $35,000. 6, 50,000 shares of no par common stock were issued in 2013. ¡00.000 shares are authorized.
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