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, 2019 (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, 2020 (amounts in thousands)
Revenue	3,300
Expenses	4,900
Net Income	-1,600

Between January 1 and March 31, 2020:

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, 2020?

Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars.

Please specify your answer in the same units as the financial statements (i.e., enter the number from your updated balance sheet).

Answer 1

The value of cash on march 31, 2020 = $18500 (in thousand)

As on March 31, 2020, (in thousands)
Other Assets (same) = $35000
Liabilities = ($37000 + $400) = $37400
Equity = ($18000 - Net loss - Dividend paid)
=> ($18000 - $1600 - $300) = $16100

So, Cash =(Liabilities + Equity - Other assets)
=> ($16100 + $37400 - $35000)
=> $18500 (Ans)

Balance sheet as of December 31, 2020 (amount in thousands)

Assets	Amount ($)	Liabilities	Amount ($)
Cash	18500	Liabilities	37400
Other assets	35000	Equity	16100
Total Assets	53500	Total Liabilities	53500

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