Question

Suppose the following items were taken from the 2017 financial statements of Vaughn Manufacturing. (All dollars are in millions.)

Common stock		$3,400		Accumulated depreciation—equipment		$4,050
Prepaid rent		150		Accounts payable		1,440
Equipment		7,320		Patents		2,140
Stock investments (long-term)		650		Notes payable (long-term)		700
Debt investments (short-term)		1,600		Retained earnings		6,470
Income taxes payable		120		Accounts receivable		1,700
Cash		1,350		Inventory		1,270

Prepare a classified balance sheet in good form as of December 31, 2017. (List current assets in order of liquidity.)

Vaughn Manufacturing Balance Sheet (in millions) Assets Liabilities and Stockholders' Equity
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all boxes must be filled

Answer 1

1350 1700 150 Vaughn Manufacturing Balance sheet As on December 31, 2017 (in Millions) Assets Current assets: Cash Account receivable Prepaid Rent Debt Investment (Short term) Inventory Total current assets Long term Investments: Stock Investment (Long term) Property, Plant and Equipment: Equipment Less: Accumulated Depreciation- Equipment Intangible assets: Patents Total assets 1600 1270 6070 650) 7320 4050 3270 2140 12130

1440 120 15601 Liabilities Current liabilities: Accounts payable Income taxes payable Total current liabilities Long term liabilities: Notes payable (Long term) Total Liabilities Stockholders' Equity Stockholders' equity Common stock Retained earnings Total stockholders' Equity Total liabilities and stockholders' equity 700 2260 3400 6470 9870 12130