Question

Suppose the following items are taken from the 2017 balance sheet of Bonita Industries (All dollars are in millions.) Goodwill Common stock Equipment Accounts payable Patents Stock investments (long-term) Accounts receivable Prepaid rent Debt investments (short-term) Retained earnings Cash Notes payable (long-term) Unearned sales revenue Accumulated depreciation-equipment $4,030 6,450 2,210 130 220 3,390 1,140 220 1,220 6,680 2,170 750 400 190 Prepare a classified balance sheet for Bonita Industries as of December 31, 2017. (List current assets in order of liquidity.)

Answer 1

1)

Current Assets
Cash	2,170
Debt investments (short-term)	1,220
Accounts receivable	1,140
Prepaid Rent	220
Total current assets		4,750
Long term invetsments
Stock Investments		3,390
Property, Plant and Equipment
Equipment	2,210
Less:
Accumulated Depreciation-Equipment	-190	2,020
Intangible Assets
Goodwill	4,030
Patents	220	4,250
Total Assets		14,410

2)

Current Liabilities
Accounts payable	130
Unearned sales revenue	400
Total Current Liabilities		530
Long Term Liabilities
Notes Payable		750
Total Liabilities		1280
Stockholders' Equity
Common Stock	6,450
Retained earnings	6,680
Total Stockholders' Equity		13,130
Total Liabilities and Stockholders' Equity		14,410