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Using the following information from an annual report, prepare a vertical analys

ID: 2454963 • Letter: U

Question

Using the following information from an annual report, prepare a vertical analysis of the consolidated balance sheet at June 30, 20x5. (Round percentage answers to one decimal place.)

June 30, 20x5

(In millions)

Cash and cash equivalents

$   584

Accounts and other receivables

182

Merchandise inventories

2,027

Prepaid expenses and other current assets

       80

Total current assets

$2,873

Real estate, net

$2,342

Other, net

2,113

Total property and equipment

$4,455

Goodwill, net

$   374

Other assets

     651

Total assets

$8,353

Short-term borrowings

$   278

Accounts payable

1,617

Accrued expenses and other current liabilities

836

Income taxes payable

     107

Total current liabilities

$2,838

Long-term debt

$1,230

Deferred income taxes

362

Other liabilities

     243

Total liabilities

$4,673

Common stock

$     30

Additional paid-in capital

453

Retained earnings

4,757

Foreign currency translation adjustments

(137)

Treasury shares, at cost

(1,423)

Total stockholders' equity

$3,680

Total liabilities and stockholders' equity

$8,353

June 30, 20x5

(In millions)

Cash and cash equivalents

$   584

Accounts and other receivables

182

Merchandise inventories

2,027

Prepaid expenses and other current assets

       80

Total current assets

$2,873

Real estate, net

$2,342

Other, net

2,113

Total property and equipment

$4,455

Goodwill, net

$   374

Other assets

     651

Total assets

$8,353

Short-term borrowings

$   278

Accounts payable

1,617

Accrued expenses and other current liabilities

836

Income taxes payable

     107

Total current liabilities

$2,838

Long-term debt

$1,230

Deferred income taxes

362

Other liabilities

     243

Total liabilities

$4,673

Common stock

$     30

Additional paid-in capital

453

Retained earnings

4,757

Foreign currency translation adjustments

(137)

Treasury shares, at cost

(1,423)

Total stockholders' equity

$3,680

Total liabilities and stockholders' equity

$8,353

Explanation / Answer

Solution:

Consolidated Balance Sheet

Particulars Amount Cash and cash equivalents   $   584 Accounts and other receivables   182 Merchandise inventories   2,027 Prepaid expenses and other current assets   80 Total current assets $2,873 Real estate, net   $2,342 Other, net   2,113 Total property and equipment   $4,455 Goodwill, net $ 374 Other assets   651   Total assets   $8,353 Short-term borrowings   $ 278 Accounts payable 1,617 Accrued expenses and other current liabilities   836 Income taxes payable 107 Total current liabilities $2,838 Long-term debt   $1,230 Deferred income taxes 362 Other liabilities    243 Total liabilities $4,673 Common stock $ 30 Additional paid-in capital 453 Retained earnings 4,757 Foreign currency translation adjustments (137) Treasury shares, at cost (1,423) Total stockholders' equity $3,680 Total liabilities and stockholders' equity $8,353