Question

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

Ruston Company Balance Sheet As of December 31, 2017 (amounts in thousands)
Cash	21,000	Liabilities	25,000
Other Assets	31,000	Equity	27,000
Total Assets	52,000	Total Liabilities & Equity	52,000

Ruston Company Income Statement January 1 to March 31, 2018 (amounts in thousands)
Revenue	3,100
Expenses	4,400
Net Income	-1,300

Between January 1 and March 31, 2018:

1. Other Assets decrease by $200,000
2. Liabilities increase by $300,000
3. Paid-In Capital does not change
4. Dividends paid of $100,000

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

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

Answer 1

Note :

1 ) Other Assets as on March 31, 2018 = Other Assets as on Dec 17 - Decrease in other assets

= 31,000 - 200 = 30,800.

2) Liabilities as on March 31, 2018 =  Liabilities as on Dec 17 + Increase in liabilities

= 25,000 + 300 = 25,300

3) Equity as on March 31, 2018 =  Equity as on Dec 17 - Net loss ( Jan to Mar) - Div paid

= 27,000 - 1,300 - 100 = 25,600

Answer .

Cash value on March 31, 2018 (amounts in thousands)

= Equity as on March 31, 2018 + Liabilities as on March 31, 2018 - Other Assets as on March 31, 2018

= 25,600 + 25,300 - 30,800 = 20,100