Question

2. Balance sheet Aa Aa The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statem ents to make several interpretations regarding the company's financial condition and performance Fuzzy Button Clothing Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Fuzzy Button Clothing Company Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current liabilities: Current assets Cash and equivalents Accounts receivable Inventories $2,767 Accounts payable $0 176 996 $0 0 937 $937 2,813 $3,750 1,266 3,712 $8,437 1,013 Als 2,970 Notes payable Total current assets $6,750 Total current liabilities Net fixed assets: Long-term debt 3,515 $4,687 Net plant and equipment $8,250 Total debt Common equity: 9,141 7,313 3,937 $11,250 $15,000 Common stock Retained earnings Total common equity Total liabilities and equity $14,063 $18,750 Total assets $18,750 $15,000

Answer 1

As per rules I am answering the first 4 subparts of the question

1: Net Plant and equipment = Total assets – current assets

= 18750- 8437=10313

2: Cash and cash equivalents = Total current assets-Receivables- Inventories

= 8437-1266-3712 = 3459

3: Total current liabilities = Accounts payable+ Accruals + Notes payable

= 0+ 176+ 996=1172

4: Retained earnings = Total equity – common stock

=14063-9141

=4922