Question

Prepare a 2018 statement of financial position for Madware Corp. based on the following information: cash = $125,000; patents and copyrights = $630,000; accounts payable = $210,000; accounts receivable = $105,000; tangible net fixed assets = $1,620,000; inventory = $293,000; notes payable = $158,000; accumulated retained earnings = $1,278,000; long-term debt = $845,000.

Answer 1

Madware Corp.

Balance Sheet

Assets
Cash	$125,000
Accounts receivable	$105,000
Inventory	$293,000
Current assets	$523,000
Tangible net fixed assets	$1,620,000
Intangible net fixed assets	$630,000
Total assets	$2,773,000
Liabilities
Accounts payable	$210,000
Notes payable	$158,000
Current liabilities	$368,000
Long-term debt	$845,000
Total liabilities	$1,213,000
Common stock	$282,000
Accumulated retained earnings	$1,278,000
Total liabilities & owners' equity	$2,773,000

Common stock = $2,773,000 - $1,213,000 - $1,278,000 = $282,000