8 Understanding the Numbers Nutrivite Projected Balance Sheet as of December 31, 200X Assets Cash Inventory Current assets Fixed assets: Equipment Less depreciation Net equipment Total assets $36,000 3,600 $32,400 32,400 $153,000 $ 40,600 80,000 120,600 Current liabilities Equity: Capital: Jan 1 Add net income Less drawings Capital: Dec 31 Liabilities and equity 40,000 100,000 84,000 (71,000) 113,000 $153,000 Liabilities and Equity Accounts payable $ 40,000 As you can see, Cash is increased by $5,000 to $40,600—which is sufficient to pay the Accounts Payable of $40,000. Drawings is decreased by $5,000 to $71,000, which provided the $5,000 increase in Cash. Pat: Thanks
