When she appeared on Shark Tank, Meg mentioned the following resources and debts that had accumulated by 30 September 2022:
Money owed to YogaMatisse by customers for past shipments: $30,000.
Past stock sale (20 percent of company) to angel investor for $ 1 million.
screen-printing machines: $1.5 million.
Wells Fargo bank loan: $1 million, with $300,000 in interest and repaid principal due in the coming year.
Accumulated operating losses: $270,000.
YogaMatisse bank checking account balance: $200,000.
In October 2022 Meg undertook six transactions.
Meg hired a printing specialist (Justin) and paid him $3,000 for the month with a check on the YogaMatisse bank account.
Meg purchased 5000 quality sustainable yoga mats in many colors to use in creating her product. Each mat cost $20, and Meg paid by $100,000 check on the YogaMatisse bank account.
Goop founder Gwyneth Paltrow purchased 1000 mats at $150 apiece and paid Meg with a check for $150,000 deposited in the YogaMatisse bank account.
Lori Greiner, of Shark Tank, purchased a 10 percent share of equity in CR for $500,000 that was deposited in the YogaMatisse bank account.
Meg collected $20,000 of the $30,000 owed to YogaMatisse by its customers and deposited it in the YogaMatisse bank checking account.
Meg paid $50,000 in interest due on the Wells Fargo bank loan: this did not reduce the principal due.
Question
Present the balance sheet for YogaMatisse as of 30 September 2022.
a. Present the YogaMatisse balance sheet grouped by assets, liabilities and net worth. Explain why
you put each item in the category you chose.
b. Identify the current (or liquid) assets and liabilities. Explain your identification. Is YogaMatisse
in danger of illiquidity? Explain.
c. Meg owns any stock in YogaMatisse not already purchased by others. As of 30 September
2022, what is total net worth? What is the accounting value of Meg’s share of net worth? Is YogaMatisse
solvent?