A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is found here: a. How much is the firm's net working capital?
b. Complete an income statement and a balance sheet for Belmond.
c. If you were asked to respond to parts (a) and (b) as part of a training exercise, what could you tell your boss about the company's financial condition based on your answers?"

a. How much is the firm's net working capital?

net working capital = current assets - current liabilities = (cash + accounts receivable + inventory) - (accounts payable + short term notes payable) = ($16,540 + $9,580 + $6,450) - ($4,770 + $600) = $27,200

b. Complete an income statement and a balance sheet for Belmond.

                        Belmond Inc.

                   Income Statement

   For the Year Ended December 31, 202x

Sales                                                             $12,830

Cost of goods sold                                     ($5,790)

Gross Profit                                                      $7,040

Operating Expenses                                     ($1,330)

General and Administrative Expense                ($870)

Interest Expense                                               ($920)

Depreciation Expense                                       ($540)

Operating Income                                              $3,380

Taxes                                                             ($1,460)

Net Income                                                         $1,920

                        Belmond Inc.

                      Balance Sheet

   For the Year Ended December 31, 202x

ASSETS

Cash                                $16,540

Accounts Receivable         $9,580

Inventory                         $6,450

Building and Equipment      $122,110

Accumulated Dep.              ($34,370)

TOTAL ASSETS               $120,310

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable                 $4,770

Short-Term Notes Payable   $600

Long-Term Debt              $55,230

Common Stock              $44,900

Retained Earnings                $14,810

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$120,310

c. If you were asked to respond to parts (a) and (b) as part of a training exercise, what could you tell your boss about the company's financial condition based on your answers?"

The financial condition of the company can be considered healthy, since its profit margin is almost 15%, although its debt to equity ratio is high = $60,600 / $59,710 = 101.5%. The company has too much debt, even though it makes enough money to pay its obligations.