Examine Riverside's assets as follows:

1. What is Riverside's largest category of assets? List all 2020 assets in the largest category and their amounts as reported by Riverside.
2. What was Riverside's cost of property and equipment at May 31, 2020? What was the carrying amount of property and equipment on this date? Why is carrying amount less than cost?

Transcribed Image Text:

- A Riverside Corporation Consolidated Balance Sheets (Partial, Adapted) B C D 2 3 (in millions) May 31 2020 2019 4 Assets 5 Current assets 7 69 Cash and cash equivalents $ 2,088 $ 257 Receivables, less allowances of $144 and $125 2.770 2,623 8 Spare parts, supplies, and fuel 4,653 4,509 9 Prepaid expenses and other 467 423 10 01 Total current assets 9,978 7.812 11 Property and equipment, at cost 12 Aircraft 2.392 2.392 13 Package handling and ground support equipment 12,229 12.132 14 Computer and electronic equipment 28,159 26.102 15 Vehicles 581 452 16 Facilities and other 1.432 1,589 17 Total cost 44.793 42,667 18 Less: Accumulated depreciation (14.900) (12.944) 19 Net property and equipment 29,893 29,723 20 Other long-term assets 21 Goodwill 22 Prepaid pension cost 722 1.340 722 1.271 23 Intangible and other assets 329 24 Total other long-term assets 2,391 25 Total assets $ 42,262 333 2,326 $ 39.861 26