E13 Preparing a Balance Sheet LO 12 LO 13 Luxury Shoe Wareho

E1-3 Preparing a Balance Sheet [LO 1-2, LO 1-3] Luxury Shoe Warehouse, Inc. is a designer shoe warehouse, selling some of the most luxurious and fashionable shoes at prices that people can actually afford. Its balance sheet, at February 2, 2013, contained the following (listed alphabetically, amounts in thousands). Accounts Payable $ 294,900 117,600 320,200 848,600 457,100 396,600 129,600 18,400 1,291,500 Accounts Receivable Cash Common Stock . Equipment Inventory Notes Payable Retained Eanings Total Assets Total Liabilities and Stockholders\' Equity Required: 1. Prepare the balance sheet as of February 2, 2013. (Enter your answers in thousands.) Luxury Shoe Warehouse, Inc Balance Sheet (in thousands) GM

Solution

Balance sheet is the set of information at the period-end where all assets, liabilities, and owners’ equity are reflected.

Balance sheet

As at 02/02/2013

Assets

$ in thousand

Current assets:

Cash

320,200

Accounts receivable

117,600

Inventory

396,600

Total current assets

834,400

Fixed assets:

Equipment

457,100

Total assets

1,291,500

Liabilities and owners’ equity:

Current liabilities:

Accounts payable

294,900

Long-term liabilities:

Notes payable

129,600

Total liabilities

424,500

Owners’ equity:

Retained earnings

18,400

Common stock

848,600

Total owners’ equity

867,000

Total liabilities and owners’ equity

1,291,500

Note: Shareholders’ equity is the same as owners’ equity.

Remark: The balance sheet is exactly tallying, since total asset is equal to total liabilities and owners’ equity.

Assets	$ in thousand
Current assets:
Cash	320,200
Accounts receivable	117,600
Inventory	396,600
Total current assets	834,400
Fixed assets:
Equipment	457,100
Total assets	1,291,500
Liabilities and owners’ equity:
Current liabilities:
Accounts payable	294,900
Long-term liabilities:
Notes payable	129,600
Total liabilities	424,500
Owners’ equity:
Retained earnings	18,400
Common stock	848,600
Total owners’ equity	867,000
Total liabilities and owners’ equity	1,291,500