E9-1 Preparing a Classified Balance Sheet [LO 9-1, LO 9-7] The following is a li
ID: 2400413 • Letter: E
Question
E9-1 Preparing a Classified Balance Sheet [LO 9-1, LO 9-7] The following is a list of account titles and amounts (in millions) reported at December 29, 2013, by Hashey, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families Accounts Receivable Accumulated Amortization Accumulated De Allowance for Doubtful Accounts Buildings Cash and Cash Equivalents $1,104 739 494 34 234 674 Equipment Goodwil Inventory Land Licensing Rights Prepaids $ 484 589 344 12 1,861 349 preciation Required 1. Prepare the asset section of a classified balance sheet for Hashey, Inc. (Enter assets in the order of their liquidity. Enter your answers in millions. Amounts to be deducted should be indicated by a minus sign.) Answer is not complete. HASHEY, INC Balance Sheet (partial) December 29, 2013 (in millions) AssetsExplanation / Answer
Solution 1:
Solution 2:
Fixed assets turnover ratio = Net Sales revenue / Average fixed assets
Average fixed assets = ($236 + $224) / 2 = $230 million
Fixed assets turnover ratio = $4,074 / $230 = 17.71
Solution 3:
As ratio of 2012 is 18.38 which is higher than fixed assets turnover ratio of 2013, it means company generate less revenue from each dollar of fixed assets than in 2012.
Hashey Inc. Balance Sheet (Partial) 29-Dec-13 (In Millions) Assets Particulars Amount Current Assets: Cash and cash equivalents $674.00 Accounts receivables $1,104.00 Allowance for doubtful accounts -$34.00 $1,070.00 Inventory $344.00 Prepaids $349.00 Total Current Assets $2,437.00 Property, Plant and Equipment: Land $12.00 Equipment $484.00 Buildings $234.00 Property, plant and equipment at cost $730.00 Accumulated depreciation -$494.00 Total Property, plant and equipment (net) $236.00 Other Assets: Licensing rights $1,861.00 Goodwill $589.00 Accumulated Amortization -$739.00 Total Other Assets $1,711.00 Total Assets $4,384.00Related Questions
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