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BUS 312Unit 2Problem solver

Unit 2 questions, solved step by step.

Statements, tax, CCA and cash flow from assets, worked the way an exam wants them. The givens each step uses light up and the picture builds as you go. Type your own numbers to solve a homework question with the same shape.

Question 1 of 9Core

Reading a balance sheet over two years

Kootenay Kitchenworks Ltd. makes commercial kitchen equipment. Its balance sheets for the last two years are given, in thousands of dollars. The company has 320,000 shares outstanding, and they trade at $28.75 today.
  1. Find total current assets and total assets for each year, and show that assets equal liabilities plus equity.
  2. Find net working capital for each year, and how much it changed during 2026.
  3. Find the book value per share at the end of 2026.
  4. Find the market value of the equity and the market-to-book ratio.
Given
Kootenay Kitchenworks Ltd. · balance sheet ($ thousands)
20262025
Cash$210k$160k
Accounts receivable$390k$340k
Inventory$520k$480k
Net fixed assets$3,080k$2,820k
Accounts payable$330k$290k
Notes payable$170k$210k
Long-term debt$1,400k$1,250k
Common stock$900k$900k
Retained earnings$1,400k$1,150k
Market data, end of 2026
Shares outstanding320,000 shares
Share price today$28.75
Solution
AssetsLiabilities + equity=Current assets1,120Fixed assets3,080Current liab.500Long-term debt1,400Equity2,300Book equity?Market value?
Read the question and the givens first. Try the first part yourself, then press Start solving.
a. Total assets 2026 / 2025
?
a. Liabilities + equity 2026 / 2025
?
b. NWC 2026 / 2025
?
b. Change in NWC
?
c. Book value per share
?
d. Market value of equity
?
d. Market-to-book
?

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