Suppose the following items were taken from the 2017 financial statements of Wil

Question

Suppose the following items were taken from the 2017 financial statements of Wildhorse Co.. (All dollars are in millions.)

Common stock

$ 2,280

Accumulated depreciation—equipment

$ 3,640

Prepaid rent

150

Accounts payable

1,140

Equipment

6,980

Patents

2,340

Stock investments (long-term)

720

Notes payable (long-term)

920

Debt investments (short-term)

1,690

Retained earnings

8,350

Income taxes payable

140

Accounts receivable

1,860

Cash

1,460

Inventory

1,270

Prepare a classified balance sheet in good form as of December 31, 2017. (List current assets in order of liquidity.)

Explanation / Answer

Solution:

Balance Sheet - Wildhorse Co. As of December 31, 2017 (In Millions) Liabilities Amount Assets Amount Current Liabilities: Current Assets: Accounts Payable $1,140.00 Cash $1,460.00 Income Taxes Payable $140.00 Accounts receivables $1,860.00 Inventory $1,270.00 Long term Liabilities: Prepaid Rent $150.00 Notes Payable $920.00 Investments: Debt Investments $1,690.00 Stockholder's Equity: Stock Investment $720.00 Common stock $2,280.00 Property Plant & Equipment: Retained Earnings $8,350.00 Equipment $6,980.00 Less: Accumulated depreciation -$3,640.00 $3,340.00 Other Assets: Patents $2,340.00 Total Liabilities and Stockholder's Equity $12,830.00 Total Assets $12,830.00

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