Question

Use the starting balance sheet, income statement, and the list of changes to answer the question.

Lightspeed Industries Balance Sheet As of December 31, 2017 (amounts in thousands)
Cash	20,000	Liabilities	37,000
Other Assets	35,000	Equity	18,000
Total Assets	55,000	Total Liabilities & Equity	55,000

Lightspeed Industries Income Statement January 1 to March 31, 2018 (amounts in thousands)
Revenue	3,300
Expenses	4,900
Net Income	-1,600

Between January 1 and March 31, 2018:

1. Other Assets do not change
2. Liabilities increase by $400,000
3. Paid-In Capital does not change
4. Dividends paid of $300,000

What is the value for Cash on March 31, 2018?

Please specify your answer in the same units as the financial statements.

Answer 1

Value for Cash =	Liabilities+Equity- Other assets
Liabilities = 37,000+$400	37400	(amount in Thousands)
Equity = 18000-1600-300	16100	(amount in Thousands)
Other Assets =	35000	(amount in Thousands)
Cash = 37400+16100-35000	18500	(amount in Thousands)
Lightspeed Industries
Balance Sheet
As of March 31, 2018
(amounts in thousands)
Cash	18,500	Liabilities	37,400
Other Assets	35,000	Equity	16,100
Total Assets	53,500	Total Liabilities & Equity	53,500