Examine the balance sheet for Out of Africa. Make any changes ...

[wenmo]

Examine the balance sheet for Out of Africa. Make any changes that you believe are necessary for a proper presentation, and then prepare a corrected balance sheet.
 
  Out of Africa
   Balance Sheet
   For the Month Ended October 31, 2012
 
   Assets Liabilities
 
  Accounts payable  1,850 Accounts receivable 2,700
  Retained earnings 21,650
  Store equipment 15,000 Shareholders' equity
  Inventory 8,950 Cash 6,850
   Contributed capital 10,000
  Total assets 25,800 Total liabilities and shareholders' equity 19,550

Question 2

Excess inventory results in all of the following except
 a. tied-up funds that could be used to improve operations
  b. lost sales
  c. increased storage expense
  d. increased risk of loss due to damage

[Zack0mack0101@yahoo.com]

Answer to Question 1

Out of Africa
Balance Sheet
October 31, 2012

Assets Liabilities

Cash  6,850 Accounts payable 1,850
Accounts receivable 2,700
Inventory 8,950 Shareholders' equity
Store equipment 15,000 Common stock 10,000
Retained earnings 21,650
_______ Total Shareholders' equity 31,650
Total assets 33,500 Total liabilities and shareholders' equity 33,500

Answer to Question 2

b

[wenmo]

Thanks for the timely response, appreciate it

[FergA]

YES! Correct, THANKS for helping me on my review