2019 Spring, q21

sant93

for part c, why cant we simply take the total assets - SUM(cash, bonds & debentures... UEP recoverable) to get the missing item? It is because we cant assume that they have listed all the components of assets in the table?

graham

Yes, that's the reason. Further down is the balance sheet where:

• green = items you're given in the problem
• yellow = items you're not given
• red = the unknown you have to find

You would have to have all the yellow items to solve the problem in the way you suggested. This is actually a hard problem, but it was exactly the same as the following problem from 2017.Spring:

• https://battleactsmain.ca/pdf/Exam_(2017_1-Spring)/(2017_1-Spring)_(13).pdf

So here's a balance sheet that I've colour-coded to show what's missing:

sant93

ok good to know! Thank you!