Module 3 – SLP
Financial Accounting ? Balance Sheet
We?re continuing to analyze the same company as in modules 1 and 2.
Additional information added in module 2:
? One client had indicated that they were interested in purchasing $35,500 worth of products. However, the client has not actually committed to the purchase.
? The bookkeeper may have made a mistake when computing cost of good sold. She included total production costs for 2012 and did not adjust ending inventory for the $35,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Additional information for module 3:
? The company made a secondary offering of stock and raised an additional $225,000.
? The company had already paid $22,000 in dividends before deciding on the offering.
? The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $50,000 and a note to the bank covers the rest.