Nestl S.A. is a Swiss company that calls itself the worlds leading nutrition, health, and Wellness Company.

Nestlé S.A. is a Swiss company that calls itself the world’s leading nutrition, health, and Wellness Company. It produces many food products including Nestlé Milk Chocolate and Nescafé. Nestlé’s condensed balance sheet data for July 1, 2011, reported under IFRS, follow (in millions of Swiss francs, CHF):

The following summarizes a few transactions during July 2011 (CHF in millions):
a. Products carried in inventory at a cost of CHF500 were sold for cash of CHF350 and on open account of CHF400, for a grand total of CHF750.
b. Collection of receivables, CHF620.
c. Depreciation expense of CHF30 was recognized.
d. Selling and administrative expenses of CHF240 were paid in cash.
e. Prepaid expenses of CHF50 expired in July. These included fire insurance premiums paid in the previous year that applied to future months. The expiration increases selling and administrative expenses and reduces other assets.

Required
1. Prepare an analysis of Nestlé’s transactions, employing the balance sheet equation approach demonstrated in Exhibit. Show all amounts in millions.
2. Prepare a statement of earnings before taxes. Also prepare a balance sheet as of July 31.

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Cash Receivables Inventories Property, plant, and equipment Other assets Total CHF 2,833 11,946 8,885 20,114 56,912 Accounts payable Other liabilities Owners' equity CHF 11,137 37,081 52,472 CHF100,690 Total CHF100,690