I was given this information... The following items (in U.S. millions) were take

Question

I was given this information...

The following items (in U.S. millions) were taken from a recentbalance sheet of NIKE, Inc.
Accts Payable: $843.9
Accts Receivable: 2,262.1
Cash: 1,388.1
Inventories: 1,811.1
Land/Bldg/Eq: 1,605.8
Notes Payable: 763.3
Other Assets: 1,289.9
Other Liabilities: 1,542.2
Retained Earnings: 4,396.5
Share capital: 1,247.7

Show the amounts in NIKE's accounting equation by calculating thevalue of NIKE's total assets, total liabilities and totalshareholder's equity

My total comes to:
Assets (accts receivable, cash, inventories, land/bldg/eq &other assets): 8,357
Liabilities (note payable, accts payable & other liabilities):3,149.4
Shareholders' Equity (Investments, retained earnings and sharecapital): 6,080.8

Using the accounting equation: Assets = Liablities + Shareholdersequity. The calculation does not match. What am I missing here? Ordid I misunderstand the question?

Explanation / Answer

Well As per the given data & your calculations 1) Assets (accts receivable, cash, inventories, land/bldg/eq &other assets): 8,357 + Investments ( 463) = 8792.8 Because when we do any investments whether purchasing a property /land or office supplies or anything ,,,,it will become our orcompany's assets. 2) Liabilities (note payable, accts payable & otherliabilities): 3,149.4 --- Correct 3) Shareholders' Equity (Investments, retained earnings and sharecapital): 6,080.8 -- Not Correct Delete "Investment money" from the above calculated figures. As i mentioned ....investments always comes under assets only . Your share-holder Equity total should come around -->5644.2 Assets = Liabilities + Shareholders Equity 8792.8 = 3148.6 + 5644.2 just check the Decimal's figures...because i didn't counted thatones

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