Question

Current assets							Current liabilities
	Cash		$72,000						Accounts payable		$12,000
	Accounts receivable		18,000						Interest payable		12,000
	Interest receivable		1,000
	Inventory		60,000
Total current assets			$151,000				Total current liabilities				$24,000
Long-term assets							Long-term liabilities
	Equipment (net of depreciation)		$128,000						Note payable		100,000
Total long-term assets			$128,000				Total long-term liabilities				$100,000
							Equity
									Common stock		10,000
									Paid-in capital		50,000
									Retained earnings		95,000
								Total equity				$155,000
Total assets				279,000				Total liabilities and equity				$279,000

Yes the difference between account payable and accountsreceivable is required.

Is accounts payable larger or smaller than accounts receivable?What is the difference? What do the numbers indicate? Explain.

What does "equipment net of depreciation" mean?

Are payables short-term or long-term?

Determine total liabilities.

Determine net short-term assets or liabilities.

Determine the total amount owed by VWV at the end of theyear.

How do we know that the above is a corporate (not a soleproprietor) balance sheet?