The MBA Math Monday series helps prospective MBA students to self assess their proficiency with the quantitative building blocks of the MBA first-year curriculum.
Balance sheets provide a snapshot of an organization’s financial condition at a moment in time, whether the organization is your favorite coffee shop or the struggling titans of Wall Street. This exercise focuses on the high-level structure and logic of a balance sheet.
Exercise:
Use the starting balance sheet and the list of changes to create an updated balance sheet and to answer the question.
|
Ruston Company |
|||
|
Cash |
3,300 |
Liabilities |
5,100 |
|
Other Assets |
3,000 |
Equity |
1,200 |
|
Total Assets |
6,300 |
Total Liabilities & Equity |
6,300 |
Between January 1 and March 31, 2009:
1. Cash decreases by $300,000
2. Other Assets decrease by $200,000
3. Equity increases by $400,000
What is the value for Liabilities on March 31, 2009?
Solution (with audio commentary): click here
Prof. Peter Regan created the self-paced, online MBA Math quantitative skills course and teaches live MBA courses at Dartmouth (Tuck), Duke (Fuqua), and Cornell (Johnson).