Question

Exercise 2-07 Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All dollars are in millions.) Common stock $3,100 Accumulated depreciation-equipment $3,730 Prepaid rent 150 Accounts payable 1,680 Equipment 6,400 Patents 2,440 Stock investments (long-term) 640 Notes payable (long-term) 790 Debt investments (short-term) 1,800 Retained earnings 6,060 Income taxes payable 170 Accounts receivable 1,800 Cash 1,190 Inventory 1,110 Prepare a classified balance sheet in good form as of December 31, 2022. (List Current Assets in order of liquidity.)

Answer 1

TEXAS INSTRUMENT, INC Balance sheet For the year Ended December 31, 2022 (in millions) Current assets: Cash 1190 Accounts Receivable 1800 Prepaid rent 150 Debt Investments ( Short term) 1800 Inventory 1110 Total Current assets 6050 Property, land and Equipment Stock Investment (Long term) 640 Equipment 6400 Less: Accumulated Depreciation -37302670 Intangible assets: Patents 24401 Total Assets 11800

1850 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 1680 Income tax payable 170 Total current liabilities Long term Liabilities: Notes payable (long term) Total Liabilities Shareholders' Equity Common stock 31001 Retained earnings 6060 Total stockholder's equity Total Liabilities and stockholders' equity 790 2640 9160 11800

Answer 2

most part of the above answer is correct. but there are just few things to notice.

First of all, it should be December , 31, 2022 instead of "for the year ended December 31 2022"

The second thing is that the order of the current assset should be in the order of liquidity, but the one shown above is incorret.it should be like this :

Current Assets

Cash

Debt Investments

Accounts Receivable

Inventory

Prepaid Rent

Total Current Assets

Long-Term Investments

Stock Investments

Property, Plant and Equipment

Equipment

Less

Accumulated Depreciation-Equipment

Intangible Assets

Patents

Total Assets

Liabilities and Stockholders' Equity

Current Liabilities

Accounts Payable

Income Taxes Payable

Total Current Liabilities

Long-Term Liabilities

Notes Payable

Total Liabilities

Stockholders' Equity

Common Stock

Retained Earnings

Total Stockholders' Equity

Total Liabilities and Stockholders' Equity