Question

Hopewell Corporation Balance Sheet As of December 31, 2019 (amounts in thousands)
Cash	125,000	Accounts Payable	24,000
Accounts Receivable	36,000	Debt	37,000
Inventory	52,000	Other Liabilities	30,000
Property Plant & Equipment, Gross	226,000	Total Liabilities	91,000
Accumulated Depreciation	59,000	Paid-In Capital	56,000
Property Plant & Equipment, Net	167,000	Retained Earnings	239,000
Other Assets	6,000	Total Equity	295,000
Total Assets	386,000	Total Liabilities & Equity	386,000

Hopewell Corporation Statement of Cash Flows January 1 to March 31, 2020 (amounts in thousands)
Net Income	8,600
Depreciation	1,400
Decrease (Increase) in Accounts Receivable	400
Decrease (Increase) in Inventory	(600)
Increase (Decrease) in Accounts Payable	(100)
Other Adjustments	0
Net Cash Flow from Operating Activities	9,700
Purchase of Property, Plant, & Equipment	(7,800)
Other Adjustments	0
Net Cash Flow from Investing Activities	(7,800)
Increase (Decrease) in Debt	200
Dividends	(700)
Other Adjustments	0
Net Cash Flow from Financing Activities	(500)
Net Cash Flow	1,400

What is the value for Total Assets on March 31, 2020?

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

Answer 1

Total assets as on 31st December 2019 = $386,000

Adjustments during 1st January and 31st March

Depreciation = (1,400)

Decrease in account receivable = (400)

Increase in inventory = 600

Purchase of property plant = 7,800

Total assets as on 31st March

= $392,600

As the depreciation will reduce the assets balance hence it is reduced from the total assets. Also decrease in account receivable will also reduce the assets balance whereas Increase in inventory will increase the asset balance. Moreover purchase of property plant will increase the asset balance.

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