11.89 1 Reorganize the following balance sheet for an industrial company. (Note: From the company's note to financial statements, within accounts receivable, $105 million and $100 million are notes receivable in 2008 and 2007 respectively. As those notes carry market interests, they should be re-classified.) #$10.00 P 2007 Financial Statements (in Millions, except for Per-Share Data) Year Ended 31 December Balance Sheet 2008 Assets Current assets Cash and equivalents 372 Accounts receivable 770 Inventory 846 Total current assets 1,988 Gross fixed assets 4,275 Accumulated depreciation (1,176) Net fixed assets 3,099 Total assets 5,087 Liabilities and shareholders' equity Current liabilities Accounts payable 476 Accrued taxes and expenses 149 Short-term debt Total current liabilities 1,090 Long-term debt 1,575 Common stock 525 Retained earnings 1,897 Total shareholders' equity 2,422 Total liabilities and shareholders' equity 5,087 315 711 780 1,806 3,752 (906) 2,846 4,652 443 465 114 450 1,007 1,515 525 1,605 2,130 4,652 Common shareholder equity (CSE) is $ in 2007 and $ in 2008