Monday MBA Math: Balance Sheet Update
The Monday MBA Math 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 the financial condition at a moment in time of an organization, whether it be 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.
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Ruston Company |
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Cash |
3,300 |
Liabilities |
5,100 |
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Other Assets |
3,000 |
Equity |
1,200 |
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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).
Peter Regan
in Accounting, MBA Math, Monday MBA Math
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