Answer:
Lanni Products
a. Lanni Products
Balance Sheet after the bank loan
Assets:
Cash             $70,000
Equipment          30,000
Total assets       $100,000
Liabilities:
Bank Loan        $50,000
Equity            $50,000
Liabilities + Equity $100,000
b. Ratio of real assets to total assets = $30,000/$100,000 = 0.3 or 30%
c. Â Lanni Products
Balance Sheet after spending the bank loan
Assets:
Cash              $0
Software          $70,000
Equipment          30,000
Total assets       $100,000
Liabilities:
Bank Loan        $50,000
Equity            $50,000
Liabilities + Equity $100,000
Explanation:
a) Data and Calculations:
Lanni Products
Balance Sheet before the bank loan
Assets:
Cash         $20,000
Equipment      30,000
Total assets   $50,000
Equity        $50,000
b) Lanni's Balance Sheets show its financial positions after each of the above mentioned transactions. Â They rely on the accounting equation with assets = liabilities and equity. Â With each transaction posted correctly, the equation remains in balance.