Question

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016.

Accounts Payable	$	960
Accounts Receivable		1,120
Accumulated Amortization		620
Accumulated Depreciation		1,250
Allowance for Doubtful Accounts		70
Cash and Cash Equivalents		1,150
Common Stock		590
Deferred Revenue		2,140
Equipment		8,730
Income Taxes Payable		70
Notes Payable (long-term)		3,870
Notes Receivable (long-term)		370
Prepaid Rent		390
Retained Earnings		8,370
Service Revenue		610
Short-Term Investments		5,150
Software		1,030

Prepare a classified balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Answer 1

11501 5150 390 1120 -70 Terracotta Incorporated Balance Sheet As on December 2, 2016 (in Millions of dollars) Assets Current assets: Cash and cash Equivalents Short term investment Prepaid rent Accounts Receivable Less : Allowance for doubtful Accounts Accounts receivable, net of allowance Total current assets Non Current Assets Equipment Less: Accumulated Depreciation Equipment Net of Accumulated Depreciation Notes Receivable (Long term) Other Assets Soft ware Acumulated Amortization Soft ware, net of Accumulated Amortization Total Assets 1050 7740 8730 - 1250 7480 1030 -620 4101 16000

960 701 2140 3170 Liabilities Current liabilities: Accounts payable Income Taxes payable Deferred Revenue Total current liabilities Long term Liabilities Notes payable Total Liabilities Equity Capital Common stock Retained Earnings Total shareholder's equity Total liabilities and Equity Capital 3870 7040 5901 8370 8960 16000