Question - How does credit impact this balance sheet? Does credit influence change in cash? And if there is only 12,500 in cash and 48,000 is spent than why wouldn't the cash be a negative? Am I missing something in the terminology?
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Acme Company Balance Sheet As of January 5, 2017 (amounts in thousands)
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Cash
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12,500
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Accounts Payable
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2,400
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Accounts Receivable
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3,600
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Debt
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3,700
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Inventory
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5,200
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Other Liabilities
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3,000
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Property Plant & Equipment
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16,700
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Total Liabilities
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9,100
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Other Assets
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600
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Pain-In Capital
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5,600
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Retained Earnings
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23,900
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Total Equity
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29,500
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Total Assets
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38,600
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Total Liabilities & Equity
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38,600
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Update the balance sheet above to reflect the transactions below, which occur on January 6, 2017
1. Buy $15,000 worth of manufacturing supplies on credit
2. Purchase equipment for $48,000 in cash
Required - What is the final amount in Cash?