Question

Electronic Arts is the world's leading developer and publisher of interactive entertainment software for personal computers and advanced entertainment systems made by Sony, Nintendo, and Microsoft. Assume that the company is revising its methods for displaying its financial statements, and the controller in the accounting department has asked you to create electronic worksheets that the department can use as its standard format for financial statement reporting. The controller has provided you with an alphabetical list of statement categories and account names (below), with corresponding balances (in millions) as of September 30 (the fiscal year end of Electric Arts). She has asked you to use a spreadsheet program to create two worksheets that organize the accounts into a properly formatted balance sheet and income statement, and that use formulas to compute amounts represented by question marks below. $ 171 328 $675 $ 223 12 283 Accounts Payable Accounts Receivable Assets Cash Contributed Capital Cost of Goods Sold Expense Expenses Income Tax Expense Inventories 2,412 986 Liabilities Net Income Notes Payable Other Assets Other Expenses Other Liabilities Promotion Expense Property and Equipment Retained Earnings 284 587 107 Revenue Sales Revenue Selling Expense Shareholders' Equity Total Assets Total Expenses Total Liabilities Total Liabilities and Shareholders' Equity Total Shareholders' Equity 364 1,998 367

Answer 1

ELECTRONIC ARTS
INCIME STATEMENT
FOR THE YEAR ENDED DECEMBER 31,
Sales revenue		675
cost of goods sold		284
gross profit/(loss)		391
operating expenses
Selling expenses	223
promotion expense	107
other expenses	1	331
Income before income taxes		60
Income tax		9
net income after tax		51
TOTAL EXPENSES= COST OF GOOD SOLD+OPERATING EXPENSES+TAX
= 284+331+9
624
BALANCE SHEET
AS ON 31.DECEMBER……
CURRENT ASSETS
CASH	$ 2,412.00
ACCOUNT RECEIVABLE	$     328.00
INVENTORIES	$     367.00
OTHER ASSETS	$     283.00
TOTAL CURRENT ASSETS		$ 3,390.00
LONG TERM ASSETS
PROPERTY AND EQUIPMENT	$     364.00
TOTAL LONG TERM ASSETS		$     364.00
TOTAL ASSETS		$ 3,754.00
CURRENT LIABILITIES
OTHER LIABILITIES	$     587.00
ACCOUNT PAYABLE	$     171.00
TOTAL CURRENT LIABILITY		$     758.00
LONG TERM LIABILITIES
NOTE PAYABLE	$        12.00
TOTAL LONG TERM LIABILITIES		$        12.00
TOTAL LIABILITIES		$     770.00
SHAREHOLDERS EQUITY
CONTRIBUTED CAPITAL	$     986.00
RETAINED EARNING( INCLUDING NET INCOME)	$ 1,998.00
TOTAL SHAREHOLDERS EQUITY		$ 2,984.00
TOTAL LIABILITIES AND SHAREHOLDER FUNDS		$ 3,754.00