JSC Aeroflot €“ Russian Airlines (€˜Aeroflot€™) was formed as a joint stock company following a government decree in 1992. The 1992 decree conferred all the rights and obligations of Aeroflot Soviet Airlines and its structural units, excluding its operations in Russia and Sheremetyevo Airport, upon the company, including inter-governmental bilateral agreements and agreements signed with foreign airlines and enterprises in the field of civil aviation. The principal activities of the company are the provision of passenger and cargo air transportation services, both domestically and internationally, and other aviation services from its base at Moscow Sheremetyevo Airport. The company and its subsidiaries (the €˜group€™) also conduct activities comprising airline catering, hotel operations, and the construction of the Sheremetyevo-3 terminal. Associated entities mainly comprise cargo handling services, fueling services and duty-free retail businesses. As at 31 December 2008, 2009 and 2010 the Government of the Russian Federation owned 51 percent of the company. The consolidated statements of financial position for the period 2008€“2010 follow (Source: Annual reports 2009 and 2010). The consolidated financial statements of the group are prepared in accordance with IFRS. The consolidated financial statements are presented in millions of US dollars, except where specifically noted otherwise.

Required
1. What is the format of the balance sheet?
2. Prepare a simplified balance sheet with three subheadings in the assets and three sub-headings in the equity and liabilities (see Table 15.2).
3. Prepare the statement of financial structure (i.e., compute the working capital, working capital need and net cash).
4. Comment on the results and information created in questions 2 and 3.

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Consolidated statement of financial position (All amounts in millions of US dollars) ASSETS Current assets Cash and cash equivalents | 2010 | 2009 | | 2010 | 2009 | 2008 660.4 121.1 146.8 Accounts payable and accrued708.5674.5 667.0 9.5 Uneamed transportation revenue 225.9 186172.9 2008 LIABILITIES AND EQUITY Current liabilities iabilities Short-term investments Accounts receivable and 924.0943.8 916.1 Deferred revenue related to frequent flyer program, Aircraft lease deposits Expendable spare parts and .6current porion 70.0 78.7 Provisions inventories Short-term borrowings Finance lease liabilities Liabilities associated with 62.4 1564 145.4 103.8 111.2 Assets of a disposal group 27.3 - classified as held for sale 1,748.81,172.6 1,151.7 assets of a disposal group classified as held for sale 1,231.21,138.0 1,098.6 Non-current assets Investments valued at equity Long-term investments Aircraft lease deposits Deferred tax assets Other non-curent assets Prepayments for aircraft 24.521.1 Non-current liabilities 3.7 15.6 16.8 Long-term bomowings 1.6 Finance lease liabilities 1,250.8 19.7 59.1 630.1623.5 460.2 32.3 240.7401.5 240.4 Deferred tax labilities 54.534.9 Provisions 48.2 235.9 156.3 95.5 Deferred revenue related to frequent fiyer program, non-cument portion Property, plant and equipment2,188.0 2,167.8 1,774.3 Derivative instruments Intangible assets 40.6 14.1 Other non-current liabilities 156.6316.0 167.7 2,139.81,877.0 1,3145 2,777.1 2,848.2 2,198.7 Equity Share capital Treasury stock Accumulated gain on disposal (107.1)14.6(41.0) of treasury shares Investment revaluation reserve Cumulative translation reserve155.8 Hedge reserve Share based payment reserve Retained earnings Equity attributable to 145.7) (123.1) 1,302.51,037.0 956.6 1,127.6 962.6 884.3 shareholders of the Non-controlling interest Total equ 27.3 1,154.91,005.8 937.3 4,526.9 4,0208 3,3504 TOTAL ASSETS 4,525.9 4,020.8 3,3504 TOTAL LIABILITIES AND EQUITY