Supply missing balance sheet numbers

The bookkeeper for Lowell? Country Music Bar left this incomplete balance sheet.

working capital is $90,000 and its debt to assets ratio is 40 percent.

Assets

Current  assets Cash. $ 21,000

Accounts receivable Inventory 42,000

Inventory (A)

Prepaid expenses 9,000

Total current assets (B)

Long-term assets

Building (C)

Less: Accumulated depreciation (39,000)

Total long-term assets 210,000

Total assets (D)

Liabilities and Stockholders? Equity

Liabilities.   

Current liabilities   

Accounts payable $ (E)   

Notes payable 12,000

Income  tax payable. 10,500

Total current liabilities 37,500

Long-term liabilities

Mortgage payable (F)

Total  liabilities. (G )

Stockholders? equity

Common stock 105,000

Retained earnings. (H)

Total stockholders? equity. (I)

Total liabilities and stockholders? equity (J)

Complete the balance sheet by supplying the missing amounts.

Why are externally presented reports required to be prepared according to generally accepted accounting principles while internally presented managerial accounting reports are not?

Case Analysis

How can a misstatement in one financial statement, whether intentional or not, affect a presentation in another financial statement? Give an example of an error that occurs on one financial statement and the error flows through to a second financial statement.