Module 2 – SLP

BALANCE SHEET

Below find a balance sheet for VWV Company.

VWV Company

Balance Sheet

December 31, 20XX

Assets

Liabilities

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

Required:

Recreate the balance sheet in an Excel spreadsheet. Use cell formulae to add and subtract numbers. Add a column next to the balance sheet for answers to the questions in this case.

• 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 owed at the end of the year.
• How do we know that the above is a corporate (not a sole proprietor) balance sheet?
• Both content and presentation matter.

SLP Assignment Expectations

Submit the Excel spreadsheet. All information should be part of the spreadsheet. Written comments should be brief and refer to the balance sheet.

Module 2 – Background

BALANCE SHEET

Required Background Material

The emphasis is on the balance sheet, but we need to understand how the four financial statements are connected. Let us start with two brief videos describing financial statements.

AccountingWITT. (2011, Oct. 1). Financial Statements – An Introduction. [Video file]. Retrieved from https://www.youtube.com/watch?v=dqOCRIcapoI&list=PLBvbcPpX_6wSF3UQwLxdRNJeK4cSGWkx8&index=21

AccountingWITT. (2011, Oct. 20). Financial Statements – Interconnectivity. [Video file]. Retrieved from https://www.youtube.com/watch?v=9OX3Cnd35LE&index=26&list=PLBvbcPpX_6wSF3UQwLxdRNJeK4cSGWkx8

Next, view the video below and read a succinct explanation for an introduction to the balance sheet.

The Motley Fool. (n.d.). Balance Sheet. Retrieved from http://wiki.fool.com/Balance_sheet

Cliqvid. (2013, Feb.13). What is a Balance Sheet? [Video File]. Retrieved from https://www.youtube.com/watch?v=ixCPM5HznRU

It is now time for a somewhat more comprehensive overview of a balance sheet. At this time it is sufficient to review the section on the balance sheet.

Baruch College’s Guide to Financial Statements. [Interactive Presentation]. (2008). Retrieved from http://www.baruch.cuny.edu/tutorials/statements/view_tutorial.html

The Securities and Exchange Commission (SEC) also has an excellent guide to financial statements on its website.

SEC. Beginners’ Guide to Financial Statements. (n.d.) Retrieved from http://www.sec.gov/investor/pubs/begfinstmtguide.htm

Suggested Resources

Accounting Coach. (n.d.). Dictionary of Accounting Terms. Retrieved from http://www.accountingcoach.com/terms

Walther, L. M. (2015). Principles of accounting: A complete online text. Retrieved from http://www.principlesofaccounting.com/ . Note that there are also many useful videos associated with Dr. Walther’s textbook.

Also, remember to cite sources!!!!!!

Rubric Name: MBA/MSHRM/MSL SLP Grading Rubric for Quantitative Business Courses -Timeliness v1

Criteria Level 4 – Excellent Level 3 – Proficient Level 2 – Developing Level 1 – Emerging Assignment-Driven Criteria 9 points Demonstrates mastery covering all key elements of the assignment in a substantive way. 8 points Demonstrates considerable proficiency covering all key elements of the assignment. 7 points Demonstrates partial proficiency covering all key elements of the assignment. 6 points Demonstrates limited or poor proficiency covering all key elements of the assignment. Presentation, Computation, and Relevance of Quantitative Information 7 points Demonstrates mastery in presenting quantitative information in a format appropriate for the discipline. Supporting computations are relevant and accurate. 6 points Demonstrates considerable proficiency in presenting quantitative information in a format appropriate for the discipline. Supporting computations are mostly relevant and accurate. 5 points Demonstrate partial proficiency in presenting quantitative information in a format appropriate for the discipline. Supporting computations are not necessarily relevant and somewhat misleading. 4 points Demonstrates limited or poor proficiency in presenting quantitative information in a format appropriate for the discipline. Supporting computations are not relevant, misleading or absent. Critical Thinking 6 points Analyzes quantitative and qualitative information as the basis for deep and thoughtful discussion, drawing insightful, carefully qualified conclusions from this work. 5 points Analyzes quantitative and qualitative information as the basis for competent and thoughtful discussion, drawing reasonable and appropriately qualified conclusions from this work. 4 points Analyzes quantitative and qualitative information as the basis for workmanlike (without inspiration or nuance, ordinary) discussion, drawing plausible conclusions from this work. 3 points Analyzes quantitative and qualitative information as the basis for tentative or limited discussion; and is hesitant or uncertain about drawing conclusions from this work. Business Writing 5 points Demonstrates mastery and proficiency in written communication to an appropriately specialized audience. 4 points Demonstrates considerable proficiency in written communication to an appropriately specialized audience. 2 points Demonstrate partial proficiency in written communication to an appropriately specialized audience. 0 points Demonstrates limited or poor proficiency in written communication to an appropriately specialized audience. Timeliness 3 points Assignment submitted on time or collaborated with professor for an approved extension on due date. 2 points Assignment submitted 1-2 days after module due date. 1 point Assignment submitted 3-4 days after module due date. 0 points Assignment submitted 5 or more days after module due date. Overall Score Level 4 27 or more Level 3 24 or more Level 2 21 or more Level 1 0 or more